Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12097


 

 

 

STATE OF MINNESOTA

 

 

EIGHTY-SIXTH SESSION - 2010

 

_____________________

 

ONE HUNDRED SECOND DAY

 

Saint Paul, Minnesota, Tuesday, May 11, 2010

 

 

      The House of Representatives convened at 10:00 a.m. and was called to order by Tony Sertich, Speaker pro tempore.

 

      Prayer was offered by the Reverend Dennis J. Johnson, House Chaplain.

 

      The members of the House gave the pledge of allegiance to the flag of the United States of America.

 

      The roll was called and the following members were present:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

      A quorum was present.

 

      The Chief Clerk proceeded to read the Journal of the preceding day.  Marquart moved that further reading of the Journal be dispensed with and that the Journal be approved as corrected by the Chief Clerk.  The motion prevailed.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12098


 

REPORTS OF CHIEF CLERK

 

      S. F. No. 1659 and H. F. No. 1537, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

      Mullery moved that the rules be so far suspended that S. F. No. 1659 be substituted for H. F. No. 1537 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

      S. F. No. 1770 and H. F. No. 2062, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

      Lanning moved that the rules be so far suspended that S. F. No. 1770 be substituted for H. F. No. 2062 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

      S. F. No. 2430 and H. F. No. 2699, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

      Hilstrom moved that the rules be so far suspended that S. F. No. 2430 be substituted for H. F. No. 2699 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

      S. F. No. 2634 and H. F. No. 2610, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

      Mullery moved that the rules be so far suspended that S. F. No. 2634 be substituted for H. F. No. 2610 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

      S. F. No. 2725 and H. F. No. 2965, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

      Paymar moved that the rules be so far suspended that S. F. No. 2725 be substituted for H. F. No. 2965 and that the House File be indefinitely postponed.  The motion prevailed.


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      S. F. No. 2839 and H. F. No. 2942, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

      Atkins moved that the rules be so far suspended that S. F. No. 2839 be substituted for H. F. No. 2942 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

      S. F. No. 3043 and H. F. No. 3122, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

      Juhnke moved that the rules be so far suspended that S. F. No. 3043 be substituted for H. F. No. 3122 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

      S. F. No. 3318 and H. F. No. 3682, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

      Kalin moved that the rules be so far suspended that S. F. No. 3318 be substituted for H. F. No. 3682 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

      S. F. No. 3361 and H. F. No. 3786, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

      Jackson moved that the rules be so far suspended that S. F. No. 3361 be substituted for H. F. No. 3786 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

Solberg from the Committee on Ways and Means to which was referred:

 

H. F. No. 2227, A bill for an act relating to local government; establishing Minnesota Innovation and Research Council; imposing powers and duties of council; appropriating money; amending Minnesota Statutes 2008, section 3.971, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 465; repealing Minnesota Statutes 2008, section 6.80.

 

Reported the same back with the recommendation that the bill pass.

 

      The report was adopted.


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Carlson from the Committee on Finance to which was referred:

 

H. F. No. 2922, A bill for an act relating to retirement; Minneapolis Employees Retirement Fund; transfer of administrative functions to the Public Employees Retirement Association; creation of MERF consolidation account within the Public Employees Retirement Association; appropriating money; amending Minnesota Statutes 2008, sections 11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, subdivision 8; 69.021, subdivision 10; 126C.41, subdivision 3; 256D.21; 353.01, subdivision 2b, by adding subdivisions; 353.03, subdivision 1; 353.05; 353.27, as amended; 353.34, subdivisions 1, 6; 353.37, subdivisions 1, 2, 3, 4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.71, subdivision 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 354.71; 354A.011, subdivision 27; 354A.39; 355.095, subdivision 1; 356.214, subdivision 1; 356.215, subdivision 8; 356.30, subdivision 3; 356.302, subdivisions 1, 7; 356.303, subdivision 4; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, subdivision 3; 356.64; 356.65, subdivision 2; 356.91; 422A.101, subdivision 3; 422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision 6; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 1; 69.031, subdivision 5; 352.01, subdivision 2b; 353.01, subdivision 2a; 353.06; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 356.401, subdivision 3; 356.415, subdivision 2; 356.96, subdivision 1; 480.181, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 353; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 422A.08, subdivision 5.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

 

ADMINISTRATIVE CONSOLIDATION OF THE MINNEAPOLIS EMPLOYEES RETIREMENT

FUND INTO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

 

Section 1.  Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a, is amended to read:

 

Subd. 2a.  Included employees.  (a) Public employees whose salary from employment in one or more positions within one governmental subdivision exceeds $425 in any month shall participate as members of the association.  If the salary is less than $425 in a subsequent month, the employee retains membership eligibility.  Eligible public employees shall participate as members of the association with retirement coverage by the public general employees retirement plan or under this chapter, the public employees police and fire retirement plan under this chapter, or the local government correctional employees retirement plan under chapter 353E, whichever applies, as a condition of their employment on the first day of employment unless they:

 

(1) are specifically excluded under subdivision 2b;

 

(2) do not exercise their option to elect retirement coverage in the association as provided in subdivision 2d, paragraph (a); or

 

(3) are employees of the governmental subdivisions listed in subdivision 2d, paragraph (b), where the governmental subdivision has not elected to participate as a governmental subdivision covered by the association.


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(b) A public employee who was a member of the association on June 30, 2002, based on employment that qualified for membership coverage by the public employees retirement plan or the public employees police and fire plan under this chapter, or the local government correctional employees retirement plan under chapter 353E as of June 30, 2002, retains that membership for the duration of the person's employment in that position or incumbency in elected office.  Except as provided in subdivision 28, the person shall participate as a member until the employee or elected official terminates public employment under subdivision 11a or terminates membership under subdivision 11b.

 

(c) Public employees under paragraph (a) include:

 

(1) physicians under section 353D.01, subdivision 2, who do not elect public employees defined contribution plan coverage under section 353D.02, subdivision 2;

 

(2) full-time employees of the Dakota County Agricultural Society; and

 

(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief Association who are not excluded employees under subdivision 2b due to coverage by the relief association pension plan and who elect Public Employee Retirement Association general plan coverage under Laws 2009, chapter 169, article 12, section 10.

 

(d) For the purpose of participation in the MERF division of the general employees retirement plan, public employees include employees who were members of the former Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as members of the MERF division of the association.

 

Sec. 2.  Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:

 

Subd. 2b.  Excluded employees.  The following public employees are not eligible to participate as members of the association with retirement coverage by the public general employees retirement plan, the local government correctional employees retirement plan under chapter 353E, or the public employees police and fire retirement plan:

 

(1) public officers, other than county sheriffs, who are elected to a governing body, or persons who are appointed to fill a vacancy in an elective office of a governing body, whose term of office commences on or after July 1, 2002, for the service to be rendered in that elective position;

 

(2) election officers or election judges;

 

(3) patient and inmate personnel who perform services for a governmental subdivision;

 

(4) except as otherwise specified in subdivision 12a, employees who are hired for a temporary position as defined under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days in the same governmental subdivision;

 

(5) employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster;

 

(6) employees who by virtue of their employment in one governmental subdivision are required by law to be a member of and to contribute to any of the plans or funds administered by the Minnesota State Retirement System, the Teachers Retirement Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any police or firefighters relief association governed by section 69.77 that has not consolidated with the Public Employees Retirement Association, or any local police or firefighters consolidation account who have not elected the type of benefit coverage provided by the public employees police and fire fund under sections 353A.01 to 353A.10, or any persons covered by section


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353.665, subdivision 4, 5, or 6, who have not elected public employees police and fire plan benefit coverage.  This clause must not be construed to prevent a person from being a member of and contributing to the Public Employees Retirement Association and also belonging to and contributing to another public pension plan or fund for other service occurring during the same period of time.  A person who meets the definition of "public employee" in subdivision 2 by virtue of other service occurring during the same period of time becomes a member of the association unless contributions are made to another public retirement fund on the salary based on the other service or to the Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;

 

(7) persons who are members of a religious order and are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended through January 1, 1987, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1954, as amended;

 

(8) employees of a governmental subdivision who have not reached the age of 23 and are enrolled on a full-time basis to attend or are attending classes on a full-time basis at an accredited school, college, or university in an undergraduate, graduate, or professional-technical program, or a public or charter high school;

 

(9) resident physicians, medical interns, and pharmacist residents and pharmacist interns who are serving in a degree or residency program in public hospitals or clinics;

 

(10) students who are serving in an internship or residency program sponsored by an accredited educational institution;

 

(11) persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;

 

(12) except for employees of Hennepin County or Hennepin Healthcare System, Inc., foreign citizens working for a governmental subdivision with a work permit of less than three years, or an H-1b visa valid for less than three years of employment.  Upon notice to the association that the work permit or visa extends beyond the three-year period, the foreign citizens must be reported for membership from the date of the extension;

 

(13) public hospital employees who elected not to participate as members of the association before 1972 and who did not elect to participate from July 1, 1988, to October 1, 1988;

 

(14) except as provided in section 353.86, volunteer ambulance service personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance service personnel may still qualify as public employees under subdivision 2 and may be members of the Public Employees Retirement Association and participants in the public general employees retirement fund or the public employees police and fire fund, whichever applies, on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel;

 

(15) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties; provided that a person who is a volunteer firefighter may still qualify as a public employee under subdivision 2 and may be a member of the Public Employees Retirement Association and a participant in the public general employees retirement fund or the public employees police and fire fund, whichever applies, on the basis of compensation received from public employment activities other than those as a volunteer firefighter;

 

(16) pipefitters and associated trades personnel employed by Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 12;


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(17) electrical workers, plumbers, carpenters, and associated trades personnel employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who have retirement coverage under a collective bargaining agreement by the Electrical Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the Carpenters Local 87 pension plan who were either first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, chapter 461, article 7, section 5;

 

(18) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

 

(19) plumbers employed by the Metropolitan Airports Commission, with coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

 

(20) employees who are hired after June 30, 2002, to fill seasonal positions under subdivision 12b which are limited in duration by the employer to 185 consecutive calendar days or less in each year of employment with the governmental subdivision;

 

(21) persons who are provided supported employment or work-study positions by a governmental subdivision and who participate in an employment or industries program maintained for the benefit of these persons where the governmental subdivision limits the position's duration to three years or less, including persons participating in a federal or state subsidized on-the-job training, work experience, senior citizen, youth, or unemployment relief program where the training or work experience is not provided as a part of, or for, future permanent public employment;

 

(22) independent contractors and the employees of independent contractors; and

 

(23) reemployed annuitants of the association during the course of that reemployment.

 

Sec. 3.  Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision to read:

 

Subd. 47.  MERF division.  "MERF division" means the separate retirement plan within the general employees retirement plan of the Public Employees Retirement Association containing the applicable provisions of Minnesota Statutes 2008, chapter 422A.

 

Sec. 4.  Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision to read:

 

Subd. 48.  MERF division account.  "MERF division account" means the separate account within the retirement fund of the general employees retirement fund of the Public Employees Retirement Association in which the actuarial liabilities of the former Minneapolis Employees Retirement Fund are held, and in which the assets of the former Minneapolis Employees Retirement Fund are credited.

 

Sec. 5.  Minnesota Statutes 2008, section 353.05, is amended to read:

 

353.05 CUSTODIAN OF FUNDS. 

 

The commissioner of management and budget shall be ex officio treasurer of the retirement funds of the association, including the MERF division, and the general bond of the commissioner of management and budget to the state shall must be so conditioned as to cover all liability for acts as treasurer of these funds.  All moneys money


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of the association received by the commissioner of management and budget shall must be set aside in the state treasury to the credit of the proper fund or account.  The commissioner of management and budget shall transmit monthly to the executive director a detailed statement of all amounts so received and credited to the fund funds, including the MERF division.  Payments out of the fund shall funds, including the MERF division, may only be made only on warrants issued by the commissioner of management and budget, upon abstracts signed by the executive director; provided that abstracts for investment may be signed by the secretary executive director of the State Board of Investment.

 

Sec. 6.  Minnesota Statutes 2009 Supplement, section 353.06, is amended to read:

 

353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS. 

 

The executive director shall from time to time certify to the State Board of Investment for investment such portions of the retirement fund funds of the association, including the MERF division, as in its the director's judgment may not be required for immediate use.  The State Board of Investment shall thereupon invest and reinvest the sum so certified, or transferred, in such securities as are duly authorized as legal investments for state employees retirement fund under section 11A.24 and shall have has authority to sell, convey, and exchange such securities and invest and reinvest the securities when it deems it desirable to do so and shall sell securities upon request of the board of trustees executive director when such funds are needed for its purposes.  All of the provisions regarding accounting procedures and restrictions and conditions for the purchase and sale of securities under chapter 11A must apply to the accounting, purchase and sale of securities for the funds of the Public Employees Retirement fund Association, including the MERF division. 

 

Sec. 7.  Minnesota Statutes 2008, section 353.27, as amended by Laws 2009, chapter 169, article 1, section 32, and article 4, sections 9, 10, 11, and 12, is amended to read:

 

353.27 PUBLIC GENERAL EMPLOYEES RETIREMENT FUND. 

 

Subdivision 1.  Income; disbursements.  There is a special fund known as the "public general employees retirement fund," the "retirement fund," or the "fund," which must include all the assets of the general employees retirement plan of the association.  This fund must be credited with all contributions, all interest and all other income of the general employees retirement plan of the Public Employees Retirement Association that are authorized by law.  From this fund there is appropriated the payments authorized by this chapter sections 353.01 to 353.46 in the amounts and at such time provided herein, including the expenses of administering the general employees retirement plan and fund.

 

Subd. 1a.  MERF division account established; revenue and disbursements.  The MERF division account is established as a special account.  The MERF division account includes all of the assets of the former Minneapolis Employees Retirement Fund that were transferred to the administration of the Public Employees Retirement Association under section 353.50.  The special account is credited with the contributions under section 353.50, subdivision 7, state aid under sections 356.43 and 422A.101, subdivision 3, investment performance on the special account assets, and all other income of the MERF division authorized by law.  The payments of annuities and benefits authorized by Minnesota Statutes 2008, chapter 422A, in the amounts and at the times provided in that chapter, and the administrative expenses of the MERF division are appropriated from the special account.

 

Subd. 2.  General employees retirement plan; employee contribution.  (a) For a basic member of the general employees retirement plan of the Public Employees Retirement Association, the employee contribution is 9.10 percent of salary.  For a coordinated member of the general employees retirement plan of the Public Employees Retirement Association, the employee contribution is six percent of salary plus any contribution rate adjustment under subdivision 3b.


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(b) These contributions must be made by deduction from salary as defined in section 353.01, subdivision 10, in the manner provided in subdivision 4.  If any portion of a member's salary is paid from other than public funds, the member's employee contribution must be based on the total salary received by the member from all sources.

 

Subd. 3.  General employees retirement plan; employer contribution.  (a) For a basic member of the general employees retirement plan of the Public Employees Retirement Association, the employer contribution is 9.10 percent of salary.  For a coordinated member of the general employees retirement plan of the Public Employees Retirement Association, the employer contribution is six percent of salary plus any contribution rate adjustment under subdivision 3b.

 

(b) This contribution must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.

 

Subd. 3a.  Additional employer contribution.  (a) An additional employer contribution to the general employees retirement fund of the Public Employees Retirement Association must be made equal to the following applicable percentage of the total salary amount for "basic members" and for "coordinated members":

 

                                                                                           Basic Program                               Coordinated Program

 

Effective before January 1, 2006                                      2.68                                                          .43

Effective January 1, 2006                                                   2.68                                                          .50

Effective January 1, 2009                                                   2.68                                                          .75

Effective January 1, 2010                                                   2.68                                                        1.00

 

These contributions must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.

 

(b) The coordinated program contribution rates set forth in paragraph (a) effective for January 1, 2009, or January 1, 2010, must not be implemented if, following receipt of the July 1, 2008, or July 1, 2009, annual actuarial valuation reports report under section 356.215, respectively, the actuarially required contributions are equal to or less than the total rates under this section in effect as of January 1, 2008.

 

(c) This subdivision is repealed once the actuarial value of the assets of the general employees retirement plan of the Public Employees Retirement Association equal or exceed the actuarial accrued liability of the plan as determined by the actuary retained under sections 356.214 and 356.215.  The repeal is effective on the first day of the first full pay period occurring after March 31 of the calendar year following the issuance of the actuarial valuation upon which the repeal is based.

 

Subd. 3b.  Change in employee and employer contributions in certain instances.  (a) For purposes of this section, a contribution sufficiency exists if the total of the employee contribution under subdivision 2, the employer contribution under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the general employees retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement.  For purposes of this section, a contribution deficiency exists if the total of the employee contributions under subdivision 2, the employer contributions under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision is less than the total of the normal cost, the administrative expenses, and the amortization contribution of the general employees retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement.


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(b) Employee and employer contributions to the general employees retirement plan under subdivisions 2 and 3 must be adjusted:

 

(1) if, after July 1, 2010, the regular actuarial valuations of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 indicate that there is a contribution sufficiency under paragraph (a) equal to or greater than 0.5 percent of covered payroll for two consecutive years, the coordinated program employee and employer contribution rates must be decreased as determined under paragraph (c) to a level such that the sufficiency equals no more than 0.25 percent of covered payroll based on the most recent actuarial valuation; or

 

(2) if, after July 1, 2010, the regular actuarial valuations of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 indicate that there is a deficiency equal to or greater than 0.5 percent of covered payroll for two consecutive years, the coordinated program employee and employer contribution rates must be increased as determined under paragraph (c) to a level such that no deficiency exists based on the most recent actuarial valuation.

 

(c) The general employees retirement plan contribution rate increase or decrease must be determined by the executive director of the Public Employees Retirement Association, must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement on or before the next February 1, and, if the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, is effective on the next July 1 following the determination by the executive director that a contribution deficiency or sufficiency has existed for two consecutive fiscal years based on the most recent actuarial valuations under section 356.215.  If the actuarially required contribution of the general employees retirement plan exceeds or is less than the total support provided by the combined employee and employer contribution rates by more than 0.5 percent of covered payroll, the general employees retirement plan coordinated program employee and employer contribution rates must be adjusted incrementally over one or more years to a level such that there remains a contribution sufficiency of no more than 0.25 percent of covered payroll.

 

(d) No incremental adjustment may exceed 0.25 percent for either the general employees retirement plan coordinated program employee and employer contribution rates per year in which any adjustment is implemented.  A general employees retirement plan contribution rate adjustment under this subdivision must not be made until at least two years have passed since fully implementing a previous adjustment under this subdivision.

 

(e) The general employees retirement plan contribution sufficiency or deficiency determination under paragraphs (a) to (d) must be made without the inclusion of the contributions to, the funded condition of, or the actuarial funding requirements of the MERF division.

 

Subd. 4.  Employer reporting requirements; contributions; member status.  (a) A representative authorized by the head of each department shall deduct employee contributions from the salary of each employee who qualifies for membership in the general employees retirement plan of the Public Employees Retirement Association or in the public employees police and fire retirement plan under this chapter and remit payment in a manner prescribed by the executive director for the aggregate amount of the employee contributions, the employer contributions and the additional employer contributions to be received within 14 calendar days.  The head of each department or the person's designee shall for each pay period submit to the association a salary deduction report in the format prescribed by the executive director.  Data required to be submitted as part of salary deduction reporting must include, but are not limited to:

 

(1) the legal names and Social Security numbers of employees who are members;

 

(2) the amount of each employee's salary deduction;


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(3) the amount of salary from which each deduction was made;

 

(4) the beginning and ending dates of the payroll period covered and the date of actual payment; and

 

(5) adjustments or corrections covering past pay periods.

 

(b) Employers must furnish the data required for enrollment for each new employee who qualifies for membership in the general employees retirement plan of the Public Employees Retirement Association or in the public employees police and fire retirement plan in the format prescribed by the executive director.  The required enrollment data on new employees must be submitted to the association prior to or concurrent with the submission of the initial employee salary deduction.  The employer shall also report to the association all member employment status changes, such as leaves of absence, terminations, and death, and shall report the effective dates of those changes, on an ongoing basis for the payroll cycle in which they occur.  The employer shall furnish data, forms, and reports as may be required by the executive director for proper administration of the retirement system.  Before implementing new or different computerized reporting requirements, the executive director shall give appropriate advance notice to governmental subdivisions to allow time for system modifications.

 

(c) Notwithstanding paragraph (a), the association executive director may provide for less frequent reporting and payments for small employers.

 

Subd. 7.  Adjustment for erroneous receipts or disbursements.  (a) Except as provided in paragraph (b), erroneous employee deductions and erroneous employer contributions and additional employer contributions to the general employees retirement plan of the Public Employees Retirement Association or to the public employees police and fire retirement plan for a person, who otherwise does not qualify for membership under this chapter, are considered:

 

(1) valid if the initial erroneous deduction began before January 1, 1990.  Upon determination of the error by the association, the person may continue membership in the association while employed in the same position for which erroneous deductions were taken, or file a written election to terminate membership and apply for a refund upon termination of public service or defer an annuity under section 353.34; or

 

(2) invalid, if the initial erroneous employee deduction began on or after January 1, 1990.  Upon determination of the error, the association shall refund all erroneous employee deductions and all erroneous employer contributions as specified in paragraph (e).  No person may claim a right to continued or past membership in the association based on erroneous deductions which began on or after January 1, 1990. 

 

(b) Erroneous deductions taken from the salary of a person who did not qualify for membership in the general employees retirement plan of the Public Employees Retirement Association or in the public employees police and fire retirement plan by virtue of concurrent employment before July 1, 1978, which required contributions to another retirement fund or relief association established for the benefit of officers and employees of a governmental subdivision, are invalid.  Upon discovery of the error, the association shall remove all invalid service and, upon termination of public service, the association shall refund all erroneous employee deductions to the person, with interest as determined under section 353.34, subdivision 2, and all erroneous employer contributions without interest to the employer.  This paragraph has both retroactive and prospective application. 

 

(c) Adjustments to correct employer contributions and employee deductions taken in error from amounts which are not salary under section 353.01, subdivision 10, must be made as specified in paragraph (e).  The period of adjustment must be limited to the fiscal year in which the error is discovered by the association and the immediate two preceding fiscal years. 


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(d) If there is evidence of fraud or other misconduct on the part of the employee or the employer, the board of trustees may authorize adjustments to the account of a member or former member to correct erroneous employee deductions and employer contributions on invalid salary and the recovery of any overpayments for a period longer than provided for under paragraph (c).

 

(e) Upon discovery of the receipt of erroneous employee deductions and employer contributions under paragraph (a), clause (2), or paragraph (c), the association must require the employer to discontinue the erroneous employee deductions and erroneous employer contributions reported on behalf of a member.  Upon discontinuation, the association must:

 

(1) for a member, provide a refund or credit to the employer in the amount of the invalid employee deductions with interest on the invalid employee deductions at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; and the employer must pay the refunded employee deductions plus interest to the member;

 

(2) for a former member who:

 

(i) is not receiving a retirement annuity or benefit, return the erroneous employee deductions to the former member through a refund with interest at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; or

 

(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving an optional annuity or survivor benefit, for whom it has been determined an overpayment must be recovered, adjust the payment amount and recover the overpayments as provided under this section; and

 

(3) return the invalid employer contributions reported on behalf of a member or former member to the employer by providing a credit against future contributions payable by the employer.

 

(f) In the event that a salary warrant or check from which a deduction for the retirement fund was taken has been canceled or the amount of the warrant or check returned to the funds of the department making the payment, a refund of the sum deducted, or any portion of it that is required to adjust the deductions, must be made to the department or institution.

 

(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit is within the limitation period specified in paragraph (c), and an overpayment has resulted by using invalid service or salary, or due to any erroneous calculation procedure, the association must recalculate the annuity or benefit payable and recover any overpayment as provided under subdivision 7b.

 

(h) Notwithstanding the provisions of this subdivision, the association may apply the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans Compliance Resolution System and not issue a refund of erroneous employee deductions and employer contributions or not recover a small overpayment of benefits if the cost to correct the error would exceed the amount of the member refund or overpayment.

 

(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure by an employer to follow the statutory requirements for reporting eligible members and salary must be paid by the employer.

 

Subd. 7a.  Deductions or contributions transmitted by error.  (a) If employee deductions and employer contributions under this section, section 353.50, 353.65, or 353E.03 were erroneously transmitted to the association, but should have been transmitted to another Minnesota public pension plan, the executive director shall transfer the erroneous employee deductions and employer contributions to the appropriate retirement fund or individual account, as applicable, without interest.  The time limitations specified in subdivisions 7 and 12 do not apply.


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(b) For purposes of this subdivision, a Minnesota public pension plan means a plan specified in section 356.30, subdivision 3, or the plans governed by chapters 353D and 354B. 

 

(c) A potential transfer under paragraph (a) that is reasonably determined to cause the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue Code, as amended, must not be made by the executive director of the association.  Within 30 days after being notified by the Public Employees Retirement Association of an unmade potential transfer under this paragraph, the employer of the affected person must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the retirement fund of the appropriate Minnesota public pension plan, or to the applicable individual account if the proper coverage is by a defined contribution plan.  The association must provide the employing unit a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from the employer.  If the employing unit receives a credit under this paragraph, the employing unit is responsible for refunding to the applicable employee any amount that had been erroneously deducted from the person's salary.

 

Subd. 7b.  Recovery of overpayments.  (a) In the event the executive director determines that an overpaid annuity or benefit that from the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, or the local government correctional employees retirement plan is the result of invalid salary included in the average salary used to calculate the payment amount must be recovered, the association must determine the amount of the employee deductions taken in error on the invalid salary, with interest determined in the manner provided for a former member under subdivision 7, paragraph (e), clause (2), item (i), and must subtract that amount from the total annuity or benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if any, must be recovered.

 

(b) If the invalid employee deductions plus interest exceed the amount of the overpaid benefits, the balance must be refunded to the person to whom the benefit or annuity is being paid.

 

(c) Any invalid employer contributions reported on the invalid salary must be credited to the employer as provided in subdivision 7, paragraph (e).

 

(d) If a member or former member, who is receiving a retirement annuity or disability benefit for which an overpayment is being recovered, dies before recovery of the overpayment is completed and a joint and survivor optional annuity is payable, the remaining balance of the overpaid annuity or benefit must continue to be recovered from the payment to the optional annuity beneficiary.

 

(e) If the association finds that a refund has been overpaid to a former member, beneficiary or other person, the amount of the overpayment must be recovered for the benefit of the respective retirement fund or account.

 

(f) The board of trustees shall adopt policies directing the period of time and manner for the collection of any overpaid retirement or optional annuity, and survivor or disability benefit, or a refund that the executive director determines must be recovered as provided under this section.

 

Subd. 7c.  Limitation on additional plan coverage.  No deductions for any plan under this chapter or chapter 353E may be taken from the salary of a person who is employed by a governmental subdivision under section 353.01, subdivision 6, and who is receiving disability benefit payments from any plan under this chapter or chapter 353E unless the person waives the right to further disability benefit payments.

 

Subd. 8.  District court reporters; salary deductions.  Deductions from the salary of a district court reporter in a judicial district consisting of two or more counties shall must be made by the auditor of the county in which the bond and official oath of such district court reporter are filed, from the portion of salary paid by such county.


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Subd. 9.  Fee officers; contributions; obligations of employers.  Any appointed or elected officer of a governmental subdivision who was or is a "public employee" within the meaning of section 353.01 and was or is a member of the fund general employees retirement plan of the Public Employees Retirement Association and whose salary was or is paid in whole or in part from revenue derived by fees and assessments, shall pay employee contribution in the amount, at the time, and in the manner provided in subdivisions 2 and 4.  This subdivision shall does not apply to district court reporters.  The employer contribution as provided in subdivision 3, and the additional employer contribution as provided in subdivision 3a, with respect to such service shall must be paid by the governmental subdivision.  This subdivision shall have has both retroactive and prospective application as to all such members; and every employing governmental subdivision is deemed liable, retroactively and prospectively, for all employer and additional employer contributions for every such member of the general employees retirement plan in its employ.  Delinquencies under this section shall be are governed in all respects by section 353.28. 

 

Subd. 10.  Employer exclusion reports.  The head of a department shall annually furnish the executive director with an exclusion report listing only those employees in potentially PERA general employees retirement plan-eligible positions who were not reported as members of the association general employees retirement plan and who worked during the school year for school employees and calendar year for nonschool employees.  The department head must certify the accuracy and completeness of the exclusion report to the association.  The executive director shall prescribe the manner and forms, including standardized exclusion codes, to be used by a governmental subdivision in preparing and filing exclusion reports.  The executive director shall also check the exclusion report to ascertain whether any omissions have been made by a department head in the reporting of new public employees for membership.  The executive director may delegate an association employee under section 353.03, subdivision 3a, paragraph (b), clause (5), to conduct a field audit to review the payroll records of a governmental subdivision. 

 

Subd. 11.  Employers; required to furnish requested information.  (a) All governmental subdivisions shall furnish promptly such other information relative to the employment status of all employees or former employees, including, but not limited to, payroll abstracts pertaining to all past and present employees, as may be requested by the executive director, including schedules of salaries applicable to various categories of employment.

 

(b) In the event payroll abstract records have been lost or destroyed, for whatever reason or in whatever manner, so that such schedules of salaries cannot be furnished therefrom, the employing governmental subdivision, in lieu thereof, shall furnish to the association an estimate of the earnings of any employee or former employee for any period as may be requested by the executive director.  If the association is provided a schedule of estimated earnings, the executive director is authorized to use the same as a basis for making whatever computations might be necessary for determining obligations of the employee and employer to the general employees retirement fund plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan.  If estimates are not furnished by the employer at the request of the executive director, the executive director may estimate the obligations of the employee and employer to the general employees retirement fund, the public employees police and fire retirement plan, or the local government correctional employees retirement plan based upon those records that are in its possession.

 

Subd. 12.  Omitted salary deductions; obligations.  (a) In the case of omission of required deductions for the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan from the salary of an employee, the department head or designee shall immediately, upon discovery, report the employee for membership and deduct the employee deductions under subdivision 4 during the current pay period or during the pay period immediately following the discovery of the omission.  Payment for the omitted obligations may only be made in accordance with reporting procedures and methods established by the executive director.

 

(b) When the entire omission period of an employee does not exceed 60 days, the governmental subdivision may report and submit payment of the omitted employee deductions and the omitted employer contributions through the reporting processes under subdivision 4.


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(c) When the omission period of an employee exceeds 60 days, the governmental subdivision shall furnish to the association sufficient data and documentation upon which the obligation for omitted employee and employer contributions can be calculated.  The omitted employee deductions must be deducted from the employee's subsequent salary payment or payments and remitted to the association for deposit in the applicable retirement fund.  The employee shall pay omitted employee deductions due for the 60 days prior to the end of the last pay period in the omission period during which salary was earned.  The employer shall pay any remaining omitted employee deductions and any omitted employer contributions, plus cumulative interest at an annual rate of 8.5 percent compounded annually, from the date or dates each omitted employee contribution was first payable.

 

(d) An employer shall not hold an employee liable for omitted employee deductions beyond the pay period dates under paragraph (c), nor attempt to recover from the employee those employee deductions paid by the employer on behalf of the employee.  Omitted deductions due under paragraph (c) which are not paid by the employee constitute a liability of the employer that failed to deduct the omitted deductions from the employee's salary.  The employer shall make payment with interest at an annual rate of 8.5 percent compounded annually.  Omitted employee deductions are no longer due if an employee terminates public service before making payment of omitted employee deductions to the association, but the employer remains liable to pay omitted employer contributions plus interest at an annual rate of 8.5 percent compounded annually from the date the contributions were first payable.

 

(e) The association may not commence action for the recovery of omitted employee deductions and employer contributions after the expiration of three calendar years after the calendar year in which the contributions and deductions were omitted.  Except as provided under paragraph (b), no payment may be made or accepted unless the association has already commenced action for recovery of omitted deductions.  An action for recovery commences on the date of the mailing of any written correspondence from the association requesting information from the governmental subdivision upon which to determine whether or not omitted deductions occurred.

 

Subd. 12a.  Terminated employees:  omitted deductions.  A terminated employee who was a member of the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, or the local government correctional employees retirement plan and who has a period of employment in which previously omitted employer contributions were made under subdivision 12 but for whom no, or only partial, omitted employee contributions have been made, or a member who had prior coverage in the association for which previously omitted employer contributions were made under subdivision 12 but who terminated service before required omitted employee deductions could be withheld from salary, may pay the omitted employee deductions for the period on which omitted employer contributions were previously paid plus interest at an annual rate of 8.5 percent compounded annually.  A terminated employee may pay the omitted employee deductions plus interest within six months of an initial notification from the association of eligibility to pay those omitted deductions.  If a terminated employee is reemployed in a position covered under a public pension fund under section 356.30, subdivision 3, and elects to pay omitted employee deductions, payment must be made no later than six months after a subsequent termination of public service. 

 

Subd. 12b.  Terminated employees:  immediate eligibility.  If deductions were omitted from salary adjustments or final salary of a terminated employee who was a member of the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan and who is immediately eligible to draw a monthly benefit, the employer shall pay the omitted employer and employer additional contributions plus interest on both the employer and employee amounts due at an annual rate of 8.5 percent compounded annually.  The employee shall pay the employee deductions within six months of an initial notification from the association of eligibility to pay omitted deductions or the employee forfeits the right to make the payment.

 

Subd. 13.  Certain warrants canceled.  A warrant payable from the general employees retirement fund, the public employees police and fire retirement fund, or the local government correctional retirement fund remaining unpaid for a period of six months must be canceled into the applicable retirement fund and not canceled into the state's general fund.


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Subd. 14.  Periods before initial coverage date.  (a) If an entity is determined to be a governmental subdivision due to receipt of a written notice of eligibility from the association with respect to the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional retirement plan, that employer and its employees are subject to the requirements of subdivision 12, effective retroactively to the date that the executive director of the association determines that the entity first met the definition of a governmental subdivision, if that date predates the notice of eligibility.

 

(b) If the retroactive time period under paragraph (a) exceeds three years, an employee is authorized to purchase service credit in the applicable Public Employees Retirement Association plan for the portion of the period in excess of three years, by making payment under section 356.551.  Notwithstanding any provision of section 356.551, subdivision 2, to the contrary, regarding time limits on purchases, payment of a service credit purchase amount may be made anytime before the termination of public service.

 

(c) This subdivision does not apply if the applicable employment under paragraph (a) included coverage by any public or private defined benefit or defined contribution retirement plan, other than a volunteer firefighters relief association.  If this paragraph applies, an individual is prohibited from purchasing service credit from a Public Employees Retirement Association plan for any period or periods specified in paragraph (a).

 

Sec. 8.  Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:

 

Subdivision 1.  Refund or deferred annuity.  (a) A former member is entitled to a refund of accumulated employee deductions under subdivision 2, or to a deferred annuity under subdivision 3.  Application for a refund may not be made before the date of termination of public service.  Except as specified in paragraph (b), a refund must be paid within 120 days following receipt of the application unless the applicant has again become a public employee required to be covered by the association.

 

(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, a refund is not payable before termination of service under section 353.01, subdivision 11a. 

 

(c) An individual who terminates public service covered by the Public Employees Retirement Association general employees retirement plan, the MERF division, the Public Employees Retirement Association police and fire retirement plan, or the public employees local government corrections service retirement plan, and who is employed by a different employer and who becomes an active member covered by one of the other two plans, may receive a refund of employee contributions plus six percent interest compounded annually from the plan from which the member terminated service.

 

Sec. 9.  Minnesota Statutes 2008, section 353.34, subdivision 6, is amended to read:

 

Subd. 6.  Additions to fund.  The board of trustees may credit to the general employees retirement fund any moneys money received in the form of contributions, donations, gifts, appropriations, bequests, or otherwise.

 

Sec. 10.  Minnesota Statutes 2008, section 353.37, subdivision 1, is amended to read:

 

Subdivision 1.  Salary maximums.  (a) The annuity of a person otherwise eligible for an annuity under this chapter from the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, or the local government correctional employees retirement plan must be suspended under subdivision 2 or reduced under subdivision 3, whichever results in the higher annual annuity amount, if the person reenters public service as a nonelective employee of a governmental subdivision in a position covered by this chapter or returns to work as an employee of a labor organization that represents public employees who are association members under this chapter and salary for the reemployment service exceeds the annual maximum earnings allowable for that age for the continued receipt of full benefit amounts monthly under the federal


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Old Age, Survivors and Disability Insurance Program as set by the secretary of health and human services under United States Code, title 42, section 403, in any calendar year.  If the person has not yet reached the minimum age for the receipt of Social Security benefits, the maximum salary for the person is equal to the annual maximum earnings allowable for the minimum age for the receipt of Social Security benefits.

 

(b) The provisions of paragraph (a) do not apply to the members of the MERF division.

 

Sec. 11.  Minnesota Statutes 2008, section 353.37, subdivision 2, is amended to read:

 

Subd. 2.  Suspension of annuity.  (a) The association shall suspend the annuity on the first of the month after the month in which the salary of the reemployed annuitant described in subdivision 1, paragraph (a), exceeds the maximums set in subdivision 1, paragraph (a), based only on those months in which the annuitant is actually employed in nonelective public service in a position covered under this chapter or employment with a labor organization that represents public employees who are association members of a retirement plan under this chapter or chapter 353E. 

 

(b) An annuitant who is elected to public office after retirement may hold that office and receive an annuity otherwise payable from a retirement plan administered by the association.

 

Sec. 12.  Minnesota Statutes 2008, section 353.37, subdivision 3, is amended to read:

 

Subd. 3.  Reduction of annuity.  (a) The association shall reduce the amount of the annuity of a person who has not reached the retirement age by one-half of the amount in excess of the applicable reemployment income maximum under subdivision 1, paragraph (a).

 

(b) There is no reduction upon reemployment, regardless of income, for a person who has reached the retirement age.

 

Sec. 13.  Minnesota Statutes 2008, section 353.37, subdivision 4, is amended to read:

 

Subd. 4.  Resumption of annuity.  The association shall resume paying a full annuity to the reemployed annuitant described in subdivision 1, paragraph (a), at the start of each calendar year until the salary exceeds the maximums under subdivision 1, paragraph (a), or on the first of the month following the termination of the employment which resulted in the suspension of the annuity.  The executive director may adopt policies regarding the suspension and reduction of annuities under this section.

 

Sec. 14.  Minnesota Statutes 2008, section 353.37, subdivision 5, is amended to read:

 

Subd. 5.  Effect on annuity.  Except as provided under this section, public service performed by an annuitant described in subdivision 1, paragraph (a), subsequent to retirement under this chapter from the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan does not increase or decrease the amount of an annuity.  The annuitant shall not make any further contributions to the association's a defined benefit plan administered by the association by reason of this subsequent public service.

 

Sec. 15.  Minnesota Statutes 2008, section 353.46, subdivision 2, is amended to read:

 

Subd. 2.  Rights of deferred annuitant.  The right entitlement of a deferred annuitant or other former member of the general employees retirement plan of the Public Employees Retirement Association, the Minneapolis Employees Retirement Fund division, the public employees police and fire retirement plan, or the local government correctional employees retirement plan to receive an annuity under the law in effect at the time such the person


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terminated public service is herein preserved; provided, however,.  The provisions of section 353.71, subdivision 2, as amended by Laws 1973, chapter 753 shall, apply to a deferred annuitant or other former member who first begins receiving an annuity after July 1, 1973. 

 

Sec. 16.  Minnesota Statutes 2008, section 353.46, subdivision 6, is amended to read:

 

Subd. 6.  Computation of benefits for certain coordinated members.  Any coordinated member of the general employees retirement plan of the Public Employees Retirement Association who prior to, before July 1, 1979, was a member of the former coordinated program of the former Minneapolis Municipal Employees Retirement Fund and who prior to, before July 1, 1978, was a member of the basic program of the Minneapolis Municipal Employees Retirement Fund shall:

 

(1) be is entitled to receive a retirement annuity when otherwise qualified, the calculation of which shall must utilize the formula accrual rates specified in section 422A.15, subdivision 1, for that portion of credited service which was rendered prior to before July 1, 1978, and the formula accrual rates specified in section 353.29, subdivision 3, for the remainder of credited service, both applied to the average salary as specified in section 353.29, subdivision 2 353.01, subdivision 17a.  The formula accrual rates to be used in calculating the retirement annuity shall must recognize the service after July 1, 1978, as a member of the former coordinated program of the former Minneapolis Municipal Employees Retirement Fund and after July 1, 1979, as a member of the general employees retirement plan of the Public Employees Retirement Association as a continuation of service rendered prior to before July 1, 1978.  The annuity amount attributable to service as a member of the basic program of the former Minneapolis Municipal Employees Retirement Fund shall be is payable by from the Minneapolis Employees Retirement Fund MERF division and the annuity amount attributable to all other service shall be is payable by from the general employees retirement fund of the Public Employees Retirement Association; .

 

(2) retain eligibility when otherwise qualified for a disability benefit from the Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding coverage by the Public Employees Retirement Association, if the member has or would, without the transfer of retirement coverage from the basic program of the Minneapolis Municipal Employees Retirement Fund to the coordinated program of the Minneapolis Municipal Employees Retirement Fund or from the coordinated program of the Minneapolis Municipal Employees Retirement Fund to the public employees retirement fund, have sufficient credited service prior to January 1, 1983, to meet the minimum service requirements for a disability benefit pursuant to section 422A.18.  The disability benefit amount attributable to service as a member of the basic program of the Minneapolis Municipal Employees Retirement Fund shall be payable by the Minneapolis Employees Retirement Fund and the disability benefit amount attributable to all other service shall be payable by the Public Employees Retirement Association. 

 

Sec. 17.  [353.50] MERF CONSOLIDATION ACCOUNT; ESTABLISHMENT AND OPERATION. 

 

Subdivision 1.  Administrative consolidation.  (a) Notwithstanding any provision of this chapter or chapter 422A to the contrary, the administration of the Minneapolis Employees Retirement Fund as the MERF division is transferred to the Public Employees Retirement Association board of trustees.  The assets, service credit, and benefit liabilities of the Minneapolis Employees Retirement Fund transfer to the MERF division account within the general employees retirement plan of the Public Employees Retirement Association established by section 353.27, subdivision 1a, on July 1, 2010.

 

(b) The creation of the MERF division must not be construed to alter the Social Security or Medicare coverage of any member of the former Minneapolis Employees Retirement Fund on June 29, 2010, while employed in a position covered under the MERF division of the Public Employees Retirement Association.


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Subd. 2.  Membership transfer.  Effective June 30, 2010, the active, inactive, and retired members of the Minneapolis Employees Retirement Fund are transferred to the MERF division administered by the Public Employees Retirement Association and are no longer members of the Minneapolis Employees Retirement Fund.

 

Subd. 3.  Service credit and benefit liability transfer.  (a) All allowable service credit and salary credit of the members of the Minneapolis Employees Retirement Fund as specified in the records of the Minneapolis Employees Retirement Fund through June 30, 2010, are transferred to the MERF division of the Public Employees Retirement Association and are credited by the MERF division.  Annuities or benefits of persons who are active members of the former Minneapolis Employees Retirement Fund on June 30, 2010, must be calculated under Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, but are only eligible for automatic postretirement adjustments after December 31, 2010, under section 356.415.

 

(b) The liability for the payment of annuities and benefits of the Minneapolis Employees Retirement Fund retirees and benefit recipients as specified in the records of the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the MERF division of the Public Employees Retirement Association on June 30, 2010.

 

Subd. 4.  Records transfer.  On June 30, 2010, the executive director of the Minneapolis Employees Retirement Fund shall transfer all records and documents relating to the Minneapolis Employees Retirement Fund and its benefit plan to the executive director of the Public Employees Retirement Association.  To the extent possible, original copies of all records and documents must be transferred.

 

Subd. 5.  Transfer of title to assets.  On June 30, 2010, legal title to the assets of the Minneapolis Employees Retirement Fund transfers to the State Board of Investment and the assets must be invested under section 11A.14, as assets of the MERF division of the Public Employees Retirement Association.  The MERF division is the successor in interest to all claims that the former Minneapolis Employees Retirement Fund may have or may assert against any person and is the successor in interest to all claims which could have been asserted against the former Minneapolis Employees Retirement Fund, but the MERF division is not liable for any claim against the former Minneapolis Employees Retirement Fund, its former governing board, or its former administrative staff acting in a fiduciary capacity under chapter 356A or under common law, which is founded upon a claim of breach of fiduciary duty, but where the act or acts constituting the claimed breach were not undertaken in good faith, the Public Employees Retirement Association may assert any applicable defense to any claim in any judicial or administrative proceeding that the former Minneapolis Employees Retirement Fund, its former board, or its former administrative staff would otherwise have been entitled to assert, and the Public Employees Retirement Association may assert any applicable defense that it has in its capacity as a statewide agency.

 

Subd. 6.  Benefits.  (a) The annuities and benefits of, or attributable to, retired, disabled, deferred, or inactive Minneapolis Employees Retirement Fund members with that status as of June 30, 2010, with the exception of post-December 31, 2010, postretirement adjustments, which are governed by paragraph (b), as calculated under Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, continue in force after the administrative consolidation under this article.

 

(b) After December 31, 2010, annuities and benefits from the MERF division are eligible for annual automatic postretirement adjustments solely under section 356.415.

 

Subd. 7.  MERF division account contributions.  (a) After June 30, 2010, the member and employer contributions to the MERF division account are governed by this subdivision.


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(b) An active member covered by the MERF division must make an employee contribution of 9.75 percent of the total salary of the member as defined in section 353.01, subdivision 10.  The employee contribution must be made by payroll deduction by the member's employing unit under section 353.27, subdivision 4, and is subject to the provisions of section 353.27, subdivisions 7, 7a, 7b, 12, 12a, and 12b.

 

(c) The employer regular contribution to the MERF division account with respect to an active MERF division member is 9.75 percent of the total salary of the member as defined in section 353.01, subdivision 10.

 

(d) The employer additional contribution to the MERF division account with respect to an active member of the MERF division is 2.68 percent of the total salary of the member as defined in section 353.01, subdivision 10, plus the employing unit's share of $3,900,000 that the employing unit paid or is payable to the former Minneapolis Employees Retirement Fund under Minnesota Statutes 2008, section 422A.101, subdivision 1a, 2, or 2a, during calendar year 2009, as was certified by the former executive director of the former Minneapolis Employees Retirement Fund.

 

(e) Annually after June 30, 2012, the employer supplemental contribution to the MERF division account by the city of Minneapolis, Special School District No. 1, Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity, Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, and the Minnesota State Colleges and Universities system is the larger of the following:

 

(1) the amount by which the total actuarial required contribution determined under section 356.215 by the approved actuary retained by the Public Employees Retirement Association in the most recent actuarial valuation of the MERF division and based on a June 30, 2031, amortization date, after subtracting the contributions under paragraphs (b), (c), and (d), exceeds $24,000,000; or

 

(2) the amount of $27,000,000, but the total supplemental contribution amount plus the contributions under paragraphs (c) and (d) may not exceed $34,000,000.  Each employing unit's share of the total employer supplemental contribution amount is equal to the applicable portion specified in paragraph (g).  The initial total actuarial required contribution after June 30, 2012, must be calculated using the mortality assumption change recommended on September 30, 2009, for the Minneapolis Employees Retirement Fund by the approved consulting actuary retained by the Minneapolis Employees Retirement Fund board.

 

(f) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of August 1 annually, if the amount of the retirement annuities and benefits paid from the MERF division account during the preceding fiscal year, multiplied by the factor of 1.035, exceeds the market value of the assets of the MERF division account on the preceding June 30, plus state aid of $9,000,000 or $24,000,000, whichever applies, plus the amounts payable under paragraphs (b), (c), (d), and (e) during the preceding fiscal year, multiplied by the factor of 1.035, the balance calculated is a special additional employer contribution.  The special additional employer contribution under this paragraph is payable in addition to any employer contribution required under paragraphs (c), (d), and (e), and is payable on or before the following June 30.  The special additional employer contribution under this paragraph must be allocated between the city of Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned public utility, improvement, or municipal activity, the Minnesota State Colleges and Universities system, Hennepin County, the Metropolitan Council, and the Metropolitan Airports Commission in proportion to their share of the actuarial accrued liability of the former Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the approved actuary retained under section 356.214 as part of the actuarial valuation prepared as of July 1, 2009, under section 356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement.

 

(g) The employer supplemental contribution under paragraph (e) or the special additional employer contribution under paragraph (f) must be allocated between the city of Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned public utility, improvement, or municipal activity, the Minnesota State Colleges and


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Universities system, Hennepin County, the Metropolitan Council, and the Metropolitan Airports Commission in proportion to their share of the actuarial accrued liability of the former Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the approved actuary retained under section 356.214 as part of the actuarial valuation prepared as of July 1, 2009, under section 356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement.

 

(h) The employer contributions under paragraphs (c), (d), and (e) must be paid as provided in section 353.28.

 

(i) Contributions under this subdivision are subject to the provisions of section 353.27, subdivisions 4, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.

 

Subd. 7a.  Minneapolis Municipal Retirement Association dues.  If authorized by an annuitant or retirement benefit recipient in writing on a form prescribed by the executive director of the Public Employees Retirement Association, the executive director shall deduct the dues for the Minneapolis Municipal Retirement Association from the person's annuity or retirement benefit.  This dues deduction authority expires upon the eventual full consolidation of the MERF account under subdivision 8.

 

Subd. 8.  Eventual full consolidation.  (a) Once the fiscal year end market value of assets of the MERF division account equals or exceeds 80 percent of the actuarial accrued liability of the MERF division as calculated by the approved actuary retained by the Public Employees Retirement Association under section 356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement, the MERF division must be merged with the general employees retirement plan of the Public Employees Retirement Association and the MERF division account ceases as a separate account within the general employees retirement fund of the Public Employees Retirement Association.

 

(b) If the market value of the MERF division account is less than 100 percent of the actuarial accrued liability of the MERF division under paragraph (a), the total employer contribution of employing units referenced in subdivision 7, paragraph (e), for the period after the full consolidation and June 30, 2031, to amortize on a level annual dollar payment the remaining unfunded actuarial accrued liability of the former MERF division account on the full consolidation date by June 30, 2031, shall be calculated by the consulting actuary retained under section 356.214 using the applicable postretirement interest rate actuarial assumption for the general employees retirement plan under section 356.215.  The actuarial accrued liability of the MERF division must be calculated using the healthy retired life mortality assumption applicable to the general employees retirement plan.

 

(c) The merger shall occur as of the first day of the first month after the date on which the triggering actuarial valuation report is filed with the executive director of the Legislative Commission on Pensions and Retirement.

 

(d) The executive director of the Public Employees Retirement Association shall prepare proposed legislation fully implementing the merger and updating the applicable provisions of chapters 353 and 356 and transmit the proposed legislation to the executive director of the Legislative Commission on Pensions and Retirement by the following February 15.

 

Subd. 9.  Merger of former MERF membership groups into PERA-general.  If provided for in an agreement between the board of trustees of the Public Employees Retirement Association and the governing board of an employing unit formerly with retirement coverage provided for its employees by the former Minneapolis Employees Retirement Fund, an employing unit may transfer sufficient assets to the general employees retirement fund to cover the anticipated actuarial accrued liability for its current or former employees that is in excess of MERF division account assets attributable to those employees, have those employees be considered full members of the general employees retirement plan, and be relieved of any further contribution obligation to the general employees retirement plan for those employees under this section.  Any agreement under this subdivision and any actuarial valuation report related to a merger under this subdivision must be submitted to the executive director of the Legislative Commission on Pensions and Retirement for comment prior to the final execution.


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Sec. 18.  Minnesota Statutes 2008, section 353.64, subdivision 7, is amended to read:

 

Subd. 7.  Pension coverage for certain public safety employees of the Metropolitan Airports Commission.  Any person first employed as either a full-time firefighter or a full-time police officer by the Metropolitan Airports Commission after June 30, 1978, who is not eligible for coverage under the agreement signed between the state and the secretary of the federal Department of Health and Human Services making the provisions of the federal Old Age, Survivors, and Disability Insurance Act applicable to municipal employees because that position is excluded from application pursuant to under Title 42, United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) and section 355.07, shall not be a member of the Minneapolis Employees Retirement Fund but shall be is a member of the public employees police and fire fund and shall be is deemed to be a firefighter or a police officer within the meaning of this section.  The Metropolitan Airports Commission shall make the employer contribution required pursuant to under section 353.65, subdivision 3, with respect to each of its firefighters or police officers covered by the public employees police and fire fund and shall meet the employers recording and reporting requirements set forth in section 353.65, subdivision 4. 

 

Sec. 19.  Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:

 

Subd. 8.  Interest and salary assumptions.  (a) The actuarial valuation must use the applicable following preretirement interest assumption and the applicable following postretirement interest assumption:

 

                                                                                                                  preretirement                       postretirement

                                                                                                                    interest rate                           interest rate

                                    plan                                                                        assumption                           assumption

 

general state employees retirement plan                                                  8.5%                                       6.0%

correctional state employees retirement plan                                          8.5                                          6.0

State Patrol retirement plan                                                                        8.5                                          6.0

legislators retirement plan                                                                            8.5                                          6.0

elective state officers retirement plan                                                       8.5                                          6.0

judges retirement plan                                                                                  8.5                                          6.0

general public employees retirement plan                                                8.5                                          6.0

public employees police and fire retirement plan                                   8.5                                          6.0

local government correctional service retirement plan                          8.5                                          6.0

teachers retirement plan                                                                              8.5                                          6.0

Minneapolis employees retirement plan                                                   6.0                                          5.0

Duluth teachers retirement plan                                                                 8.5                                          8.5

St. Paul teachers retirement plan                                                                8.5                                          8.5

Minneapolis Police Relief Association                                                      6.0                                          6.0

Fairmont Police Relief Association                                                            5.0                                          5.0

Minneapolis Fire Department Relief Association                                   6.0                                          6.0

Virginia Fire Department Relief Association                                            5.0                                          5.0

Bloomington Fire Department Relief Association                                  6.0                                          6.0

local monthly benefit volunteer firefighters relief associations            5.0                                          5.0

 

(b) Before July 1, 2010, the actuarial valuation must use the applicable following single rate future salary increase assumption, the applicable following modified single rate future salary increase assumption, or the applicable following graded rate future salary increase assumption:


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(1) single rate future salary increase assumption

 

                                                                                                                                              future salary

                          plan                                                                                                      increase assumption

 

legislators retirement plan                                                                                                        5.0%

judges retirement plan                                                                                                              4.0

Minneapolis Police Relief Association                                                                                  4.0

Fairmont Police Relief Association                                                                                        3.5

Minneapolis Fire Department Relief Association                                                               4.0

Virginia Fire Department Relief Association                                                                        3.5

Bloomington Fire Department Relief Association                                                              4.0

 

(2) modified single rate future salary increase assumption

 

                                                                                                                                              future salary

                          plan                                                                                                      increase assumption

 

Minneapolis employees retirement plan                                              the prior calendar year amount increased

                                                                                                                     first by 1.0198 percent to prior fiscal year

                                                                                                                       date and then increased by 4.0 percent

                                                                                                                               annually for each future year

 

(3) (2) select and ultimate future salary increase assumption or graded rate future salary increase assumption

 

                                                                                                                                              future salary

                          plan                                                                                                      increase assumption

 

general state employees retirement plan                                                  select calculation and assumption A

correctional state employees retirement plan                                                             assumption H

State Patrol retirement plan                                                                                            assumption G

general public employees retirement plan                                                select calculation and assumption B

public employees police and fire fund retirement plan                                             assumption C

local government correctional service retirement plan                                              assumption G

teachers retirement plan                                                                                                  assumption D

Duluth teachers retirement plan                                                                                     assumption E

St. Paul teachers retirement plan                                                                                    assumption F

 

The select calculation is:  during the designated select period, a designated percentage rate is multiplied by the result of the designated integer minus T, where T is the number of completed years of service, and is added to the applicable future salary increase assumption.  The designated select period is five years and the designated integer is five for the general state employees retirement plan and the general public employees retirement plan.  The designated select period is ten years and the designated integer is ten for all other retirement plans covered by this clause.  The designated percentage rate is:  (1) 0.2 percent for the correctional state employees retirement plan, the State Patrol retirement plan, the public employees police and fire plan, and the local government correctional service plan; (2) 0.6 percent for the


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general state employees retirement plan and the general public employees retirement plan; and (3) 0.3 percent for the teachers retirement plan, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers Retirement Fund Association.  The select calculation for the Duluth Teachers Retirement Fund Association is 8.00 percent per year for service years one through seven, 7.25 percent per year for service years seven and eight, and 6.50 percent per year for service years eight and nine.

 

The ultimate future salary increase assumption is:

 

age          A                     B                       C                   D                     E                      F                       G                           H

 

16         5.95%            5.95%            11.00%          7.70%            8.00%            6.90%            7.7500%            7.2500%

17         5.90                5.90                11.00              7.65                8.00                6.90                7.7500               7.2500

18         5.85                5.85                11.00              7.60                8.00                6.90                7.7500               7.2500

19         5.80                5.80                11.00              7.55                8.00                6.90                7.7500               7.2500

20         5.75                5.40                11.00              5.50                6.90                6.90                7.7500               7.2500

21         5.75                5.40                11.00              5.50                6.90                6.90                7.1454               6.6454

22         5.75                5.40                10.50              5.50                6.90                6.90                7.0725               6.5725

23         5.75                5.40                10.00              5.50                6.85                6.85                7.0544               6.5544

24         5.75                5.40                  9.50              5.50                6.80                6.80                7.0363               6.5363

25         5.75                5.40                  9.00              5.50                6.75                6.75                7.0000               6.5000

26         5.75                5.36                  8.70              5.50                6.70                6.70                7.0000               6.5000

27         5.75                5.32                  8.40              5.50                6.65                6.65                7.0000               6.5000

28         5.75                5.28                  8.10              5.50                6.60                6.60                7.0000               6.5000

29         5.75                5.24                  7.80              5.50                6.55                6.55                7.0000               6.5000

30         5.75                5.20                  7.50              5.50                6.50                6.50                7.0000               6.5000

31         5.75                5.16                  7.30              5.50                6.45                6.45                7.0000               6.5000

32         5.75                5.12                  7.10              5.50                6.40                6.40                7.0000               6.5000

33         5.75                5.08                  6.90              5.50                6.35                6.35                7.0000               6.5000

34         5.75                5.04                  6.70              5.50                6.30                6.30                7.0000               6.5000

35         5.75                5.00                  6.50              5.50                6.25                6.25                7.0000               6.5000

36         5.75                4.96                  6.30              5.50                6.20                6.20                6.9019               6.4019

37         5.75                4.92                  6.10              5.50                6.15                6.15                6.8074               6.3074

38         5.75                4.88                  5.90              5.40                6.10                6.10                6.7125               6.2125

39         5.75                4.84                  5.70              5.30                6.05                6.05                6.6054               6.1054

40         5.75                4.80                  5.50              5.20                6.00                6.00                6.5000               6.0000

41         5.75                4.76                  5.40              5.10                5.90                5.95                6.3540               5.8540

42         5.75                4.72                  5.30              5.00                5.80                5.90                6.2087               5.7087

43         5.65                4.68                  5.20              4.90                5.70                5.85                6.0622               5.5622

44         5.55                4.64                  5.10              4.80                5.60                5.80                5.9048               5.4078

45         5.45                4.60                  5.00              4.70                5.50                5.75                5.7500               5.2500

46         5.35                4.56                  4.95              4.60                5.40                5.70                5.6940               5.1940

47         5.25                4.52                  4.90              4.50                5.30                5.65                5.6375               5.1375

48         5.15                4.48                  4.85              4.50                5.20                5.60                5.5822               5.0822

49         5.05                4.44                  4.80              4.50                5.10                5.55                5.5404               5.0404

50         4.95                4.40                  4.75              4.50                5.00                5.50                5.5000               5.0000

51         4.85                4.36                  4.75              4.50                4.90                5.45                5.4384               4.9384

52         4.75                4.32                  4.75              4.50                4.80                5.40                5.3776               4.8776

53         4.65                4.28                  4.75              4.50                4.70                5.35                5.3167               4.8167


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54         4.55                4.24                4.75                4.50                4.60                5.30                5.2826               4.7826

55         4.45                4.20                4.75                4.50                4.50                5.25                5.2500               4.7500

56         4.35                4.16                4.75                4.50                4.40                5.20                5.2500               4.7500

57         4.25                4.12                4.75                4.50                4.30                5.15                5.2500               4.7500

58         4.25                4.08                4.75                4.60                4.20                5.10                5.2500               4.7500

59         4.25                4.04                4.75                4.70                4.10                5.05                5.2500               4.7500

60         4.25                4.00                4.75                4.80                4.00                5.00                5.2500               4.7500

61         4.25                4.00                4.75                4.90                3.90                5.00                5.2500               4.7500

62         4.25                4.00                4.75                5.00                3.80                5.00                5.2500               4.7500

63         4.25                4.00                4.75                5.10                3.70                5.00                5.2500               4.7500

64         4.25                4.00                4.75                5.20                3.60                5.00                5.2500               4.7500

65         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

66         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

67         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

68         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

69         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

70         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

71         4.25                4.00                                        5.20                                                                                           

 

(c) Before July 2, 2010, the actuarial valuation must use the applicable following payroll growth assumption for calculating the amortization requirement for the unfunded actuarial accrued liability where the amortization retirement is calculated as a level percentage of an increasing payroll:

 

                              plan                                                                                            payroll growth assumption

 

general state employees retirement plan                                                                                  4.50%

correctional state employees retirement plan                                                                          4.50

State Patrol retirement plan                                                                                                        4.50

legislators retirement plan                                                                                                            4.50

judges retirement plan                                                                                                                  4.00

general public employees retirement plan                                                                                4.50

public employees police and fire retirement plan                                                                   4.50

local government correctional service retirement plan                                                          4.50

teachers retirement plan                                                                                                              4.50

Duluth teachers retirement plan                                                                                                 4.50

St. Paul teachers retirement plan                                                                                                5.00

 

(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to apply, unless a different salary assumption or a different payroll increase assumption:

 

(1) has been proposed by the governing board of the applicable retirement plan;

 

(2) is accompanied by the concurring recommendation of the actuary retained under section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most recent actuarial valuation report if section 356.214 does not apply; and

 

(3) has been approved or deemed approved under subdivision 18.


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Sec. 20.  Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, is amended to read:

 

Subd. 11.  Amortization contributions.  (a) In addition to the exhibit indicating the level normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial reporting purposes indicating the additional annual contribution sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit for contribution determination purposes indicating the additional contribution sufficient to amortize the unfunded actuarial accrued liability.  For the retirement plans listed in subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees Retirement Association, the additional contribution must be calculated on a level percentage of covered payroll basis by the established date for full funding in effect when the valuation is prepared, assuming annual payroll growth at the applicable percentage rate set forth in subdivision 8, paragraph (c).  For all other retirement plans and for the MERF division of the Public Employees Retirement Association, the additional annual contribution must be calculated on a level annual dollar amount basis. 

 

(b) For any retirement plan other than the Minneapolis Employees Retirement Fund, the general employees a retirement plan of the Public Employees Retirement Association, and the St. Paul Teachers Retirement Fund Association governed by paragraph (d), (e), (f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, which change or changes by itself or by themselves without inclusion of any other items of increase or decrease produce a net increase in the unfunded actuarial accrued liability of the fund, the established date for full funding is the first actuarial valuation date occurring after June 1, 2020.

 

(c) For any retirement plan other than the Minneapolis Employees Retirement Fund and the general employees retirement plan of the Public Employees Retirement Association, if there has been a change in any or all of the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, and the change or changes, by itself or by themselves and without inclusion of any other items of increase or decrease, produce a net increase in the unfunded actuarial accrued liability in the fund, the established date for full funding must be determined using the following procedure:

 

(i) the unfunded actuarial accrued liability of the fund must be determined in accordance with the plan provisions governing annuities and retirement benefits and the actuarial assumptions in effect before an applicable change;

 

(ii) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the unfunded actuarial accrued liability amount determined under item (i) by the established date for full funding in effect before the change must be calculated using the interest assumption specified in subdivision 8 in effect before the change;

 

(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance with any new plan provisions governing annuities and benefits payable from the fund and any new actuarial assumptions and the remaining plan provisions governing annuities and benefits payable from the fund and actuarial assumptions in effect before the change;

 

(iv) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the difference between the unfunded actuarial accrued liability amount calculated under item (i) and the unfunded actuarial accrued liability amount calculated under item (iii) over a period of 30 years from the end of the plan year in which the applicable change is effective must be calculated using the applicable interest assumption specified in subdivision 8 in effect after any applicable change;


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(v) the level annual dollar or level percentage amortization contribution under item (iv) must be added to the level annual dollar amortization contribution or level percentage calculated under item (ii);

 

(vi) the period in which the unfunded actuarial accrued liability amount determined in item (iii) is amortized by the total level annual dollar or level percentage amortization contribution computed under item (v) must be calculated using the interest assumption specified in subdivision 8 in effect after any applicable change, rounded to the nearest integral number of years, but not to exceed 30 years from the end of the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and not to be less than the period of years beginning in the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and ending by the date for full funding in effect before the change; and

 

(vii) the period determined under item (vi) must be added to the date as of which the actuarial valuation was prepared and the date obtained is the new established date for full funding.

 

(d) For the Minneapolis Employees Retirement Fund MERF division of the Public Employees Retirement Association, the established date for full funding is June 30, 2020 2031.

 

(e) For the general employees retirement plan of the Public Employees Retirement Association, the established date for full funding is June 30, 2031.

 

(f) For the Teachers Retirement Association, the established date for full funding is June 30, 2037.

 

(g) For the correctional state employees retirement plan of the Minnesota State Retirement System, the established date for full funding is June 30, 2038.

 

(h) For the judges retirement plan, the established date for full funding is June 30, 2038.

 

(i) For the public employees police and fire retirement plan, the established date for full funding is June 30, 2038.

 

(j) For the St. Paul Teachers Retirement Fund Association, the established date for full funding is June 30 of the 25th year from the valuation date.  In addition to other requirements of this chapter, the annual actuarial valuation shall must contain an exhibit indicating the funded ratio and the deficiency or sufficiency in annual contributions when comparing liabilities to the market value of the assets of the fund as of the close of the most recent fiscal year.

 

(k) For the retirement plans for which the annual actuarial valuation indicates an excess of valuation assets over the actuarial accrued liability, the valuation assets in excess of the actuarial accrued liability must be recognized as a reduction in the current contribution requirements by an amount equal to the amortization of the excess expressed as a level percentage of pay over a 30-year period beginning anew with each annual actuarial valuation of the plan.

 

Sec. 21.  Minnesota Statutes 2008, section 422A.101, subdivision 3, is amended to read:

 

Subd. 3.  State contributions.  (a) Subject to the limitation set forth in paragraph (c), the state shall pay to the MERF division account of the Public Employees Retirement Association with respect to the former Minneapolis Employees Retirement Fund annually an amount equal to the amount calculated under paragraph (b).

 

(b) The payment amount is an amount equal to the financial requirements of the Minneapolis Employees Retirement Fund MERF division of the Public Employees Retirement Association reported in the actuarial valuation of the fund general employees retirement plan of the Public Employees Retirement Association prepared by the actuary retained under section 356.214 consistent with section 356.215 for the most recent year but based on a target


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date for full amortization of the unfunded actuarial accrued liabilities by June 30, 2020 2031, less the amount of employee contributions required under section 422A.10 353.50, subdivision 7, paragraph (b), and the amount of employer contributions required under subdivisions 1a, 2, and 2a section 353.50, subdivision 7, paragraphs (c) and (d).  Payments shall must be made September 15 annually. 

 

(c) The annual state contribution under this subdivision may not exceed $9,000,000, plus the cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section 356.43, through June 30, 2012, and may not exceed $9,000,000, plus the cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section 356.43, plus $15,000,000 annually after June 30, 2012, and until June 30, 2031. 

 

(d) Annually and after June 30, 2012, if the amount determined under paragraph (b) exceeds $9,000,000 the applicable maximum amount specified in paragraph (c), the excess must be allocated to and paid to the fund by the employers identified in Minnesota Statutes 2008, section 422A.101, subdivisions 1a and, 2, and 2a other than units of metropolitan government.  Each employer's share of the excess is proportionate to the employer's share of the fund's unfunded actuarial accrued liability as disclosed in the annual actuarial valuation prepared by the actuary retained under section 356.214 compared to the total unfunded actuarial accrued liability as of July 1, 2009, attributed to all employers identified in Minnesota Statutes 2008, section 422A.101, subdivisions 1a and 2, other than units of metropolitan government.  Payments must be made in equal installments as set forth in paragraph (b).

 

(e) State contributions under this section end on September 15, 2031, or on September 1 following the first date on which the current assets of the MERF division of the Public Employees Retirement Association equal or exceed the actuarial accrued liability of the MERF division of the Public Employees Retirement Association, whichever occurs earlier.

 

Sec. 22.  Minnesota Statutes 2008, section 422A.26, is amended to read:

 

422A.26 COVERAGE BY THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION. 

 

Notwithstanding section 422A.09, or any other law to the contrary, any person whose employment by, or assumption of a position as an appointed or elected officer of, the city of Minneapolis, any of the boards, departments, or commissions operated as a department of the city of Minneapolis or independently if financed in whole or in part by funds of the city of Minneapolis, the Metropolitan Airports Commission, the former Minneapolis Employees Retirement Fund, or Special School District Number 1 if the person is not a member of the Minneapolis Teachers Retirement Fund Association by virtue of that employment or position, initially commences on or after July 1, 1979 shall be is a member of the general employees retirement plan of the Public Employees Retirement Association unless excluded from membership pursuant to under section 353.01, subdivision 2b.  In no event shall there be any new members of the contributing class of the Minneapolis employees fund on or after July 1, 1979. 

 

Sec. 23.  JULY 1, 2010, MERF DIVISION ACTUARIAL VALUATION ASSUMPTIONS. 

 

The approved actuary retained by the Minneapolis Employees Retirement Fund shall compare the actuarial assumptions to be used for the July 1, 2010, actuarial valuation of the general employees retirement plan of the Public Employees Retirement Association with the actuarial assumptions used to prepare the July 1, 2009, actuarial valuation of the Minneapolis Employees Retirement Fund and, on or before July 1, 2010, shall recommend to the approved actuary retained by the Public Employees Retirement Association and to the Legislative Commission on Pensions and Retirement the actuarial assumptions that the actuary believes would be appropriate for the MERF division portion of the actuarial valuation of the general employees retirement plan of the Public Employees Retirement Association.  Any actuarial assumption changes related to the MERF division must be approved under Minnesota Statutes, section 356.215, subdivision 18.


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Sec. 24.  MINNEAPOLIS MUNICIPAL RETIREMENT ASSOCIATION. 

 

(a) The administrative consolidation of the former Minneapolis Employees Retirement Fund into the general employees retirement plan of the Public Employees Retirement Association and the merger of the MERF division of the Public Employees Retirement Association into the general employees retirement plan of the Public Employees Retirement Association does not affect the function of the Minneapolis Municipal Retirement Association, a nonprofit corporation, to monitor the administration of the retirement coverage for former members of the former Minneapolis Employees Retirement Fund.

 

(b) Nothing in this article entitles the Minneapolis Municipal Retirement Association to receive any revenue derived from taxes or obligates the Public Employees Retirement Association to undertake any special duties with respect to the corporation.

 

Sec. 25.  TRANSFER OF MERF EMPLOYEES. 

 

(a) Unless the employee elects the severance pay option under paragraph (c), full-time employees of the Minneapolis Employees Retirement Fund first employed before June 30, 2008, and employed full time by the Minneapolis Employees Retirement Fund on June 29, 2010, with the employment title of benefits coordinator, are transferred to employment by the city of Minneapolis on July 1, 2010.  The chief human relations official of the city of Minneapolis shall place the transferred employee in an appropriate employment position based on the employee's education and employment experience.  Transferred employees must have their accumulated, but unused, vacation and sick leave balances as of June 30, 2010, posted to the individual accounts with the new employer.  The transferred employees must receive length of service credit for time served with the Minneapolis Employees Retirement Fund.  The transferred employee must be given the opportunity as of the date of transfer to be covered for all health and other insurance benefits offered by the new employer.  Upon the transfer of the employee, the Minneapolis Employees Retirement Fund shall transfer assets to the city of Minneapolis equal to the present value of any accumulated unused vacation or sick leave balances as of the date of transfer.

 

(b) Unless the employee elects the severance pay option under paragraph (c), full-time employees of the Minneapolis Employees Retirement Fund first employed before June 30, 2008, and employed full time by the Minneapolis Employees Retirement Fund on June 29, 2010, with the employment title of accounting manager or accountant II are transferred to employment by the Public Employees Retirement Association on July 1, 2010.  The chief human relations official of the Public Employees Retirement Association shall place the transferred employee in an appropriate employment position based on the employee's education and employment experience.  Transferred employees must have their accumulated, but unused, vacation and sick leave balances as of June 30, 2010, posted to the individual accounts with the new employer.  The transferred employees must receive length of service credit for time served with the Minneapolis Employees Retirement Fund.  The transferred employee must be given the opportunity as of the date of transfer to be covered for all health and other insurance benefits offered by the new employer.  Upon the transfer of the employee, the executive director of the Public Employees Retirement Association shall deduct from any assets transferred under section 353.50 an amount equal to the present value of any accumulated unused vacation or sick leave balances as of the date of transfer.

 

(c) An employee covered by paragraph (a) or (b) who elects not to transfer to the new employer unit is granted severance pay in an amount equivalent to one year of salary based on the last annual salary rate received by the employee.  The election must be made prior to June 30, 2010, and is irrevocable.  The severance pay is payable from the Minneapolis Employees Retirement Fund on June 30, 2010.

 

Sec. 26.  MINNEAPOLIS EMPLOYEES RETIREMENT FUND. 

 

$10,000,000 in fiscal year 2010 is appropriated to the Minneapolis employees retirement fund, and is payable to the Minneapolis employees retirement fund on or before June 29, 2010.  This is a onetime appropriation, and is in addition to the amounts paid by the state in fiscal year 2010 under Minnesota Statutes, section 422A.101, subdivision 2.


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Sec. 27.  REVISOR'S INSTRUCTION. 

 

In the next and future editions of Minnesota Statutes, the revisor of statutes shall renumber Minnesota Statutes, section 422A.101, subdivision 3, as Minnesota Statutes, section 353.505, and shall renumber Minnesota Statutes, section 422A.26, as Minnesota Statutes, section 353.855.  The revisor of statutes shall make conforming changes in Minnesota Statutes and Minnesota Rules consistent with the renumbering.

 

Sec. 28.  REPEALER. 

 

Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, and 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, and 8; 422A.06, subdivisions 1, 2, 3, 5, 6, and 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, and 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, and 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, and 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, and 12; 422A.231; 422A.24; and 422A.25, are repealed.

 

Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; and 422A.08, subdivision 5, are repealed.

 

Sec. 29.  EFFECTIVE DATE. 

 

(a) Sections 1 to 25, 27, and 28 are effective June 30, 2010.

 

(b) Section 26 is effective the day following final enactment.

 

ARTICLE 2

 

CONFORMING CHANGES RELATED TO THE MERF ADMINISTRATIVE CONSOLIDATION

 

Section 1.  Minnesota Statutes 2009 Supplement, section 6.67, is amended to read:

 

6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT. 

 

Whenever a public accountant in the course of auditing the books and affairs of a political subdivision or a local public pension plan governed by section 69.77, sections 69.771 to 69.775, or chapter 354A, 422A, 423B, 423C, or 424A, discovers evidence pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or employee in the conduct of duties and affairs, the public accountant shall promptly make a report of such discovery to the state auditor and the county attorney of the county in which the governmental unit is situated and the public accountant shall also furnish a copy of the report of audit upon completion to said officers.  The county attorney shall act on such report in the same manner as required by law for reports made to the county attorney by the state auditor.

 

Sec. 2.  Minnesota Statutes 2008, section 11A.23, subdivision 4, is amended to read:

 

Subd. 4.  Covered retirement funds and plans.  The provisions of this section shall must apply to the following retirement funds and plans:

 

(1) Board of Trustees of the Minnesota State Colleges and Universities supplemental retirement plan established under chapter 354C;


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(2) state employees retirement fund established pursuant to chapter 352;

 

(3) correctional employees retirement plan established pursuant to chapter 352;

 

(4) State Patrol retirement fund established pursuant to chapter 352B;

 

(5) unclassified employees retirement plan established pursuant to chapter 352D;

 

(6) public general employees retirement fund established pursuant to chapter 353;

 

(7) public employees police and fire fund established pursuant to chapter 353;

 

(8) teachers' retirement fund established pursuant to chapter 354;

 

(9) judges' retirement fund established pursuant to chapter 490; and

 

(10) any other funds required by law to be invested by the board.

 

Sec. 3.  Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to read:

 

Subdivision 1.  In executive branch, local government.  All meetings, including executive sessions, must be open to the public

 

(a) of a state

 

(1) agency,

 

(2) board,

 

(3) commission, or

 

(4) department,

 

when required or permitted by law to transact public business in a meeting;

 

(b) of the governing body of a

 

(1) school district however organized,

 

(2) unorganized territory,

 

(3) county,

 

(4) statutory or home rule charter city,

 

(5) town, or

 

(6) other public body;


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(c) of any

 

(1) committee,

 

(2) subcommittee,

 

(3) board,

 

(4) department, or

 

(5) commission,

 

of a public body; and

 

(d) of the governing body or a committee of:

 

(1) a statewide public pension plan defined in section 356A.01, subdivision 24; or

 

(2) a local public pension plan governed by section 69.77, sections 69.771 to 69.775, or chapter 354A, 422A, or 423B. 

 

Sec. 4.  Minnesota Statutes 2008, section 43A.17, subdivision 9, is amended to read:

 

Subd. 9.  Political subdivision compensation limit.  (a) The salary and the value of all other forms of compensation of a person employed by a political subdivision of this state, excluding a school district, or employed under section 422A.03 may not exceed 110 percent of the salary of the governor as set under section 15A.082, except as provided in this subdivision.  For purposes of this subdivision, "political subdivision of this state" includes a statutory or home rule charter city, county, town, metropolitan or regional agency, or other political subdivision, but does not include a hospital, clinic, or health maintenance organization owned by such a governmental unit.

 

(b) Beginning in 2006, the limit in paragraph (a) shall must be adjusted annually in January.  The limit shall must equal the limit for the prior year increased by the percentage increase, if any, in the Consumer Price Index for all-urban consumers from October of the second prior year to October of the immediately prior year.

 

(c) Deferred compensation and payroll allocations to purchase an individual annuity contract for an employee are included in determining the employee's salary.  Other forms of compensation which shall must be included to determine an employee's total compensation are all other direct and indirect items of compensation which are not specifically excluded by this subdivision.  Other forms of compensation which shall must not be included in a determination of an employee's total compensation for the purposes of this subdivision are:

 

(1) employee benefits that are also provided for the majority of all other full-time employees of the political subdivision, vacation and sick leave allowances, health and dental insurance, disability insurance, term life insurance, and pension benefits or like benefits the cost of which is borne by the employee or which is not subject to tax as income under the Internal Revenue Code of 1986;

 

(2) dues paid to organizations that are of a civic, professional, educational, or governmental nature; and

 

(3) reimbursement for actual expenses incurred by the employee which the governing body determines to be directly related to the performance of job responsibilities, including any relocation expenses paid during the initial year of employment.


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The value of other forms of compensation shall be is the annual cost to the political subdivision for the provision of the compensation.

 

(d) The salary of a medical doctor or doctor of osteopathy occupying a position that the governing body of the political subdivision has determined requires an M.D. or D.O. degree is excluded from the limitation in this subdivision.

 

(e) The commissioner may increase the limitation in this subdivision for a position that the commissioner has determined requires special expertise necessitating a higher salary to attract or retain a qualified person.  The commissioner shall review each proposed increase giving due consideration to salary rates paid to other persons with similar responsibilities in the state and nation.  The commissioner may not increase the limitation until the commissioner has presented the proposed increase to the Legislative Coordinating Commission and received the commission's recommendation on it.  The recommendation is advisory only.  If the commission does not give its recommendation on a proposed increase within 30 days from its receipt of the proposal, the commission is deemed to have made no recommendation.  If the commissioner grants or granted an increase under this paragraph, the new limitation shall must be adjusted beginning in August 2005 and in each subsequent calendar year in January by the percentage increase equal to the percentage increase, if any, in the Consumer Price Index for all-urban consumers from October of the second prior year to October of the immediately prior year.

 

Sec. 5.  Minnesota Statutes 2008, section 43A.316, subdivision 8, is amended to read:

 

Subd. 8.  Continuation of coverage.  (a) A former employee of an employer participating in the program who is receiving a public pension disability benefit or an annuity or has met the age and service requirements necessary to receive an annuity under chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 424, or Minnesota Statutes 2008, chapter 422A, and the former employee's dependents, are eligible to participate in the program.  This participation is at the person's expense unless a collective bargaining agreement or personnel policy provides otherwise.  Premiums for these participants must be established by the commissioner.

 

The commissioner may provide policy exclusions for preexisting conditions only when there is a break in coverage between a participant's coverage under the employment-based group insurance program and the participant's coverage under this section.  An employer shall notify an employee of the option to participate under this paragraph no later than the effective date of retirement.  The retired employee or the employer of a participating group on behalf of a current or retired employee shall notify the commissioner within 30 days of the effective date of retirement of intent to participate in the program according to the rules established by the commissioner.

 

(b) The spouse of a deceased employee or former employee may purchase the benefits provided at premiums established by the commissioner if the spouse was a dependent under the employee's or former employee's coverage under this section at the time of the death.  The spouse remains eligible to participate in the program as long as the group that included the deceased employee or former employee participates in the program.  Coverage under this clause must be coordinated with relevant insurance benefits provided through the federally sponsored Medicare program.

 

(c) The program benefits must continue in the event of strike permitted by section 179A.18, if the exclusive representative chooses to have coverage continue and the employee pays the total monthly premiums when due. 

 

(d) A participant who discontinues coverage may not reenroll.

 

Persons participating under these paragraphs shall make appropriate premium payments in the time and manner established by the commissioner.


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Sec. 6.  Minnesota Statutes 2009 Supplement, section 69.011, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  Unless the language or context clearly indicates that a different meaning is intended, the following words and terms, for the purposes of this chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:

 

(a) "Commissioner" means the commissioner of revenue.

 

(b) "Municipality" means:

 

(1) a home rule charter or statutory city;

 

(2) an organized town;

 

(3) a park district subject to chapter 398;

 

(4) the University of Minnesota;

 

(5) for purposes of the fire state aid program only, an American Indian tribal government entity located within a federally recognized American Indian reservation;

 

(6) for purposes of the police state aid program only, an American Indian tribal government with a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93;

 

(7) for purposes of the police state aid program only, the Metropolitan Airports Commission with respect to peace officers covered under chapter 422A; and

 

(8) for purposes of the police state aid program only, the Department of Natural Resources and the Department of Public Safety with respect to peace officers covered under chapter 352B.

 

(c) "Minnesota Firetown Premium Report" means a form prescribed by the commissioner containing space for reporting by insurers of fire, lightning, sprinkler leakage and extended coverage premiums received upon risks located or to be performed in this state less return premiums and dividends.

 

(d) "Firetown" means the area serviced by any municipality having a qualified fire department or a qualified incorporated fire department having a subsidiary volunteer firefighters' relief association.

 

(e) "Market value" means latest available market value of all property in a taxing jurisdiction, whether the property is subject to taxation, or exempt from ad valorem taxation obtained from information which appears on abstracts filed with the commissioner of revenue or equalized by the State Board of Equalization.

 

(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the commissioner for reporting by each fire and casualty insurer of all premiums received upon direct business received by it in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for insuring against the perils contained in auto insurance coverages as reported in the Minnesota business schedule of the annual financial statement which each insurer is required to file with the commissioner in accordance with the governing laws or rules less return premiums and dividends.

 

(g) "Peace officer" means any person:


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(1) whose primary source of income derived from wages is from direct employment by a municipality or county as a law enforcement officer on a full-time basis of not less than 30 hours per week;

 

(2) who has been employed for a minimum of six months prior to December 31 preceding the date of the current year's certification under subdivision 2, clause (b);

 

(3) who is sworn to enforce the general criminal laws of the state and local ordinances;

 

(4) who is licensed by the Peace Officers Standards and Training Board and is authorized to arrest with a warrant; and

 

(5) who is a member of a local police relief association to which section 69.77 applies the Minneapolis Police Relief Association, the State Patrol retirement plan, or the public employees police and fire fund, or the Minneapolis Employees Retirement Fund. 

 

(h) "Full-time equivalent number of peace officers providing contract service" means the integral or fractional number of peace officers which would be necessary to provide the contract service if all peace officers providing service were employed on a full-time basis as defined by the employing unit and the municipality receiving the contract service.

 

(i) "Retirement benefits other than a service pension" means any disbursement authorized under section 424A.05, subdivision 3, clauses (2) and (3). 

 

(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person who was elected or appointed to the specified position or, in the absence of the person, another person who is designated by the applicable governing body.  In a park district, the clerk is the secretary of the board of park district commissioners.  In the case of the University of Minnesota, the clerk is that official designated by the Board of Regents.  For the Metropolitan Airports Commission, the clerk is the person designated by the commission.  For the Department of Natural Resources or the Department of Public Safety, the clerk is the respective commissioner.  For a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person designated by the applicable American Indian tribal government. 

 

(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the retirement plan established by chapter 353G.

 

Sec. 7.  Minnesota Statutes 2008, section 69.021, subdivision 10, is amended to read:

 

Subd. 10.  Reduction in police state aid apportionment.  (a) The commissioner of revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph (b), 6, and 7a, for eligible employer units by any excess police state aid.

 

(b) "Excess police state aid" is:

 

(1) for counties and for municipalities in which police retirement coverage is provided wholly by the public employees police and fire fund and all police officers are members of the plan governed by sections 353.63 to 353.657, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association;

 

(2) for municipalities in which police retirement coverage is provided in part by the public employees police and fire fund governed by sections 353.63 to 353.657 and in part by a local police consolidation account governed by chapter 353A, and established before March 2, 1999, for which the municipality declined merger under section


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353.665, subdivision 1, or established after March 1, 1999, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), plus the amount of the employer's total prior calendar year obligation under section 353A.09, subdivision 5, paragraphs (a) and (b), as certified by the executive director of the Public Employees Retirement Association;

 

(3) for municipalities in which police retirement coverage is provided by the public employees police and fire plan governed by sections 353.63 to 353.657, in which police retirement coverage was provided by a police consolidation account under chapter 353A before July 1, 1999, and for which the municipality has an additional municipal contribution under section 353.665, subdivision 8, paragraph (b), the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), plus the amount of any additional municipal contribution under section 353.665, subdivision 8, paragraph (b), until the year 2010, as certified by the executive director of the Public Employees Retirement Association;

 

(4) for municipalities in which police retirement coverage is provided in part by the public employees police and fire fund governed by sections 353.63 to 353.657 and in part by a local police relief association governed by sections 69.77 and 423A.01, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the public employees retirement association, plus the amount of the financial requirements of the relief association certified to the applicable municipality during the prior calendar year under section 69.77, subdivisions 4 and 5, reduced by the amount of member contributions deducted from the covered salary of the relief association during the prior calendar year under section 69.77, subdivision 3, as certified by the chief administrative officer of the applicable municipality;

 

(5) for the Metropolitan Airports Commission, if there are police officers hired before July 1, 1978, with retirement coverage by the Minneapolis Employees Retirement Fund remaining, the amount in excess of the commission's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association, plus the amount determined by expressing the commission's total prior calendar year contribution to the Minneapolis Employees Retirement Fund under section 422A.101, subdivisions 2 and 2a, as a percentage of the commission's total prior calendar year covered payroll for commission employees covered by the Minneapolis Employees Retirement Fund and applying that percentage to the commission's total prior calendar year covered payroll for commission police officers covered by the Minneapolis Employees Retirement Fund, as certified by the chief administrative officer of the Metropolitan Airports Commission; and

 

(6) for the Department of Natural Resources and for the Department of Public Safety, the amount in excess of the employer's total prior calendar year obligation under section 352B.02, subdivision 1c, for plan members who are peace officers under section 69.011, subdivision 1, clause (g), as certified by the executive director of the Minnesota State Retirement System. 

 

(c) The employer's total prior calendar year obligation with respect to the public employees police and fire plan is the total prior calendar year obligation under section 353.65, subdivision 3, for police officers as defined in section 353.64, subdivision 2, and the actual total prior calendar year obligation under section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivision 3, but not to exceed for those firefighters the applicable following amounts: 

 

Municipality                                                                                                         Maximum Amount

 

Albert Lea                                                                                                                  $54,157.01

Anoka                                                                                                                           10,399.31

Apple Valley                                                                                                                  5,442.44

Austin                                                                                                                            49,864.73

Bemidji                                                                                                                         27,671.38


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Brooklyn Center                                                                                                            6,605.92

Brooklyn Park                                                                                                             24,002.26

Burnsville                                                                                                                     15,956.00

Cloquet                                                                                                                           4,260.49

Coon Rapids                                                                                                                39,920.00

Cottage Grove                                                                                                               8,588.48

Crystal                                                                                                                             5,855.00

East Grand Forks                                                                                                        51,009.88

Edina                                                                                                                             32,251.00

Elk River                                                                                                                         5,216.55

Ely                                                                                                                                 13,584.16

Eveleth                                                                                                                          16,288.27

Fergus Falls                                                                                                                     6,742.00

Fridley                                                                                                                           33,420.64

Golden Valley                                                                                                              11,744.61

Hastings                                                                                                                        16,561.00

Hopkins                                                                                                                          4,324.23

International Falls                                                                                                      14,400.69

Lakeville                                                                                                                            782.35

Lino Lakes                                                                                                                     5,324.00

Little Falls                                                                                                                       7,889.41

Maple Grove                                                                                                                  6,707.54

Maplewood                                                                                                                    8,476.69

Minnetonka                                                                                                                 10,403.00

Montevideo                                                                                                                    1,307.66

Moorhead                                                                                                                    68,069.26

New Hope                                                                                                                       6,739.72

North St. Paul                                                                                                                 4,241.14

Northfield                                                                                                                           770.63

Owatonna                                                                                                                    37,292.67

Plymouth                                                                                                                        6,754.71

Red Wing                                                                                                                        3,504.01

Richfield                                                                                                                       53,757.96

Rosemont Rosemount                                                                                                 1,712.55

Roseville                                                                                                                         9,854.51

St. Anthony                                                                                                                  33,055.00

St. Louis Park                                                                                                              53,643.11

Thief River Falls                                                                                                          28,365.04

Virginia                                                                                                                         31,164.46

Waseca                                                                                                                         11,135.17

West St. Paul                                                                                                                15,707.20

White Bear Lake                                                                                                           6,521.04

Woodbury                                                                                                                      3,613.00

any other municipality                                                                                                         0.00

 

(d) The total amount of excess police state aid must be deposited in the excess police state-aid account in the general fund, administered and distributed as provided in subdivision 11.


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Sec. 8.  Minnesota Statutes 2009 Supplement, section 69.031, subdivision 5, is amended to read:

 

Subd. 5.  Deposit of state aid.  (a) If the municipality or the independent nonprofit firefighting corporation is covered by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the executive director shall credit the fire state aid against future municipal contribution requirements under section 353G.08 and shall notify the municipality or independent nonprofit firefighting corporation of the fire state aid so credited at least annually.  If the municipality or the independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief association if there is one organized and the association has filed a financial report with the municipality.  If the relief association has not filed a financial report with the municipality, the municipal treasurer shall delay transmission of the fire state aid to the relief association until the complete financial report is filed.  If the municipality or independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, if there is no relief association organized, or if the association has dissolved or has been removed as trustees of state aid, then the treasurer of the municipality shall deposit the money in the municipal treasury and the money may be disbursed only for the purposes and in the manner set forth in section 424A.08 or for the payment of the employer contribution requirement with respect to firefighters covered by the public employees police and fire retirement plan under section 353.65, subdivision 3.

 

(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the police state aid in the following manner:

 

(1) For a municipality in which a local police relief association exists and all peace officers are members of the association, the total state aid must be transmitted to the treasurer of the relief association within 30 days of the date of receipt, and the treasurer of the relief association shall immediately deposit the total state aid in the special fund of the relief association;

 

(2) For a municipality in which police retirement coverage is provided by the public employees police and fire fund and all peace officers are members of the fund, including municipalities covered by section 353.665, the total state aid must be applied toward the municipality's employer contribution to the public employees police and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8, paragraph (b), if applicable; or

 

(3) For a municipality other than a city of the first class with a population of more than 300,000 in which both a police relief association exists and police retirement coverage is provided in part by the public employees police and fire fund, the municipality may elect at its option to transmit the total state aid to the treasurer of the relief association as provided in clause (1), to use the total state aid to apply toward the municipality's employer contribution to the public employees police and fire fund subject to all the provisions set forth in clause (2), or to allot the total state aid proportionately to be transmitted to the police relief association as provided in this subdivision and to apply toward the municipality's employer contribution to the public employees police and fire fund subject to the provisions of clause (2) on the basis of the respective number of active full-time peace officers, as defined in section 69.011, subdivision 1, clause (g). 

 

For a city of the first class with a population of more than 300,000, in addition, the city may elect to allot the appropriate portion of the total police state aid to apply toward the employer contribution of the city to the public employees police and fire fund based on the covered salary of police officers covered by the fund each payroll period and to transmit the balance to the police relief association; or

 

(4) For a municipality in which police retirement coverage is provided in part by the public employees police and fire fund and in part by a local police consolidation account governed by chapter 353A and established before March 2, 1999, for which the municipality declined merger under section 353.665, subdivision 1, or established after March 1, 1999, the total police state aid must be applied towards the municipality's total employer contribution to the public employees police and fire fund and to the local police consolidation account under sections 353.65, subdivision 3, and 353A.09, subdivision 5. 


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(c) The county treasurer, upon receipt of the police state aid for the county, shall apply the total state aid toward the county's employer contribution to the public employees police and fire fund under section 353.65, subdivision 3. 

 

(d) The designated Metropolitan Airports Commission official, upon receipt of the police state aid for the Metropolitan Airports Commission, shall apply the total police state aid first toward the commission's employer contribution for police officers to the Minneapolis Employees Retirement Fund under section 422A.101, subdivision 2a, and, if there is any amount of police state aid remaining, shall apply that remainder toward the commission's employer contribution for police officers to the public employees police and fire plan under section 353.65, subdivision 3. 

 

(e) The police state aid apportioned to the Departments of Public Safety and Natural Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of management and budget for transfer to the funds and accounts from which the salaries of peace officers certified under section 69.011, subdivision 2a 2b, are paid.  The commissioner of revenue shall certify to the commissioners of public safety, natural resources, and management and budget the amounts to be transferred from the appropriation for police state aid.  The commissioners of public safety and natural resources shall certify to the commissioner of management and budget the amounts to be credited to each of the funds and accounts from which the peace officers employed by their respective departments are paid.  Each commissioner shall allocate the police state aid first for employer contributions for employees funded from the general fund and then for employer contributions for employees funded from other funds.  For peace officers whose salaries are paid from the general fund, the amounts transferred from the appropriation for police state aid must be canceled to the general fund. 

 

Sec. 9.  Minnesota Statutes 2008, section 126C.41, subdivision 3, is amended to read:

 

Subd. 3.  Retirement levies.  (a) In 1991 and each year thereafter, a district to which this subdivision applies may levy an additional amount required for contributions to the general employees retirement plan of the Public Employees Retirement Association as the successor of the Minneapolis Employees Retirement Fund as a result of the maximum dollar amount limitation on state contributions to the fund that plan imposed under section 422A.101, subdivision 3.  The additional levy must not exceed the most recent amount certified by the board of the Minneapolis Employees Retirement Fund executive director of the Public Employees Retirement Association as the district's share of the contribution requirement in excess of the maximum state contribution under section 422A.101, subdivision 3. 

 

(b) For taxes payable in 1994 and thereafter, Special School District No. 1, Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5, section 1.

 

(c) If the employer retirement fund contributions under section 354A.12, subdivision 2a, are increased for fiscal year 1994 or later fiscal years, Special School District No. 1, Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable 1994 or later an amount equal to the amount derived by applying the net increase in the employer retirement fund contribution rate of the respective teacher retirement fund association between fiscal year 1993 and the fiscal year beginning in the year after the levy is certified to the total covered payroll of the applicable teacher retirement fund association.  If an applicable school district levies under this paragraph, they may not levy under paragraph (b). 

 

(d) In addition to the levy authorized under paragraph (c), Special School District No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the contributions under section 423A.02, subdivision 3, and may also levy in payable 1994 or later an amount equal to the state aid contribution under section 354A.12, subdivision 3b.  Independent School District No. 625, St. Paul, may levy payable in 1997 or later an amount equal to the supplemental contributions under section 423A.02, subdivision 3. 


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Sec. 10.  Minnesota Statutes 2008, section 256D.21, is amended to read:

 

256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS EMPLOYEES. 

 

Subdivision 1.  Continuation of benefits.  Each employee of the city of Minneapolis who is transferred to and employed by the county under the provisions of section 256D.20 and who is a contributing member of a retirement system organized under the provisions of Minnesota Statutes 2008, chapter 422A, shall continue to be is a member of that system the MERF division of the Public Employees Retirement Association and is entitled to all of the applicable benefits conferred thereby by and subject to all the restrictions of chapter 422A, unless the member applies to cancel membership within six months after January 1, 1974 section 353.50. 

 

Subd. 2.  City obligation.  The cost to the public of that portion of the retirement allowances or other benefits accrued while any such employee was in the service of the city of Minneapolis shall must remain an obligation of the city and a tax shall must be levied and collected by it to discharge its obligation as provided by chapter 422A in section 353.50, subdivision 7.

 

Subd. 3.  County obligation.  The cost to the public of the retirement allowances or other benefits accruing to employees so transferred to and employed by the county shall be is the obligation of and paid by the county at such time as the retirement board shall fix and determine in accordance with chapter 422A in section 353.50, subdivision 7.  The county shall pay to the municipal general employees retirement fund an amount certified to the county auditor of the county by the retirement board as the cost of the retirement allowances and other benefits accruing and owing to such county employees of the Public Employees Retirement Association those amounts.  The cost to the public of the retirement allowances as herein provided shall coverage under this section must be paid from the county revenue fund by the county auditor upon receipt of certification from the retirement board as herein provided, and the county board is authorized to levy and collect such taxes as may be necessary to pay such costs.

 

Sec. 11.  Minnesota Statutes 2009 Supplement, section 352.01, subdivision 2b, is amended to read:

 

Subd. 2b.  Excluded employees.  "State employee" does not include: 

 

(1) students employed by the University of Minnesota, or the state colleges and universities, unless approved for coverage by the Board of Regents of the University of Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, whichever is applicable;

 

(2) employees who are eligible for membership in the state Teachers Retirement Association, except employees of the Department of Education who have chosen or may choose to be covered by the general state employees retirement plan of the Minnesota State Retirement System instead of the Teachers Retirement Association;

 

(3) employees of the University of Minnesota who are excluded from coverage by action of the Board of Regents;

 

(4) officers and enlisted personnel in the National Guard and the naval militia who are assigned to permanent peacetime duty and who under federal law are or are required to be members of a federal retirement system;

 

(5) election officers;

 

(6) persons who are engaged in public work for the state but who are employed by contractors when the performance of the contract is authorized by the legislature or other competent authority;

 

(7) officers and employees of the senate, or of the house of representatives, or of a legislative committee or commission who are temporarily employed;


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(8) receivers, jurors, notaries public, and court employees who are not in the judicial branch as defined in section 43A.02, subdivision 25, except referees and adjusters employed by the Department of Labor and Industry;

 

(9) patient and inmate help in state charitable, penal, and correctional institutions including the Minnesota Veterans Home;

 

(10) persons who are employed for professional services where the service is incidental to their regular professional duties and whose compensation is paid on a per diem basis;

 

(11) employees of the Sibley House Association;

 

(12) the members of any state board or commission who serve the state intermittently and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those boards if their compensation is $5,000 or less per year, or, if they are legally prohibited from serving more than three years; and the board of managers of the State Agricultural Society and its treasurer unless the treasurer is also its full-time secretary;

 

(13) state troopers and persons who are described in section 352B.011, subdivision 10, clauses (2) to (8);

 

(14) temporary employees of the Minnesota State Fair who are employed on or after July 1 for a period not to extend beyond October 15 of that year; and persons who are employed at any time by the state fair administration for special events held on the fairgrounds;

 

(15) emergency employees who are in the classified service; except that if an emergency employee, within the same pay period, becomes a provisional or probationary employee on other than a temporary basis, the employee must be considered a "state employee" retroactively to the beginning of the pay period;

 

(16) temporary employees in the classified service, and temporary employees in the unclassified service who are appointed for a definite period of not more than six months and who are employed less than six months in any one-year period;

 

(17) interns hired for six months or less and trainee employees, except those listed in subdivision 2a, clause (8);

 

(18) persons whose compensation is paid on a fee basis or as an independent contractor;

 

(19) state employees who are employed by the Board of Trustees of the Minnesota State Colleges and Universities in unclassified positions enumerated in section 43A.08, subdivision 1, clause (9);

 

(20) state employees who in any year have credit for 12 months service as teachers in the public schools of the state and as teachers are members of the Teachers Retirement Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for incidental employment as a state employee that is not covered by one of the teacher retirement associations or systems;

 

(21) employees of the adjutant general who are employed on an unlimited intermittent or temporary basis in the classified or unclassified service for the support of Army and Air National Guard training facilities;

 

(22) chaplains and nuns who are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1986, as amended through December 31, 1992;


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(23) examination monitors who are employed by departments, agencies, commissions, and boards to conduct examinations required by law;

 

(24) persons who are appointed to serve as members of fact-finding commissions or adjustment panels, arbitrators, or labor referees under chapter 179;

 

(25) temporary employees who are employed for limited periods under any state or federal program for training or rehabilitation, including persons who are employed for limited periods from areas of economic distress, but not including skilled and supervisory personnel and persons having civil service status covered by the system;

 

(26) full-time students who are employed by the Minnesota Historical Society intermittently during part of the year and full-time during the summer months;

 

(27) temporary employees who are appointed for not more than six months, of the Metropolitan Council and of any of its statutory boards, if the board members are appointed by the Metropolitan Council;

 

(28) persons who are employed in positions designated by the Department of Management and Budget as student workers;

 

(29) members of trades who are employed by the successor to the Metropolitan Waste Control Commission, who have trade union pension plan coverage under a collective bargaining agreement, and who are first employed after June 1, 1977;

 

(30) off-duty peace officers while employed by the Metropolitan Council;

 

(31) persons who are employed as full-time police officers by the Metropolitan Council and as police officers are members of the public employees police and fire fund;

 

(32) persons who are employed as full-time firefighters by the Department of Military Affairs and as firefighters are members of the public employees police and fire fund;

 

(33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa valid for less than three years of employment, unless notice of extension is supplied which allows them to work for three or more years as of the date the extension is granted, in which case they are eligible for coverage from the date extended; and

 

(34) persons who are employed by the Board of Trustees of the Minnesota State Colleges and Universities and who elected to remain members of the Public Employees Retirement Association or of the MERF division of the Public Employees Retirement Association as the successor of the Minneapolis Employees Retirement Fund, whichever applies, under Minnesota Statutes 1994, section 136C.75. 

 

Sec. 12.  Minnesota Statutes 2008, section 353.03, subdivision 1, is amended to read:

 

Subdivision 1.  Management; composition; election.  (a) The management of the public employees retirement fund Public Employees Retirement Association is vested in an 11-member board of trustees consisting of ten members and the state auditor.  The state auditor may designate a deputy auditor with expertise in pension matters as the auditor's representative on the board.  The governor shall appoint five trustees to four-year terms, one of whom shall be designated to represent school boards, one to represent cities, one to represent counties, one who is a retired annuitant, and one who is a public member knowledgeable in pension matters.  The membership of the association, including recipients of retirement annuities and disability and survivor benefits, shall elect five trustees for terms of four years, one of whom must be a member of the police and fire fund and one of whom must be a former member who met the definition of public employee under section 353.01, subdivisions 2 and 2a, for at least five years prior


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to terminating membership or a member who receives a disability benefit.  Terms expire on January 31 of the fourth year, and positions are vacant until newly elected members are seated.  Except as provided in this subdivision, trustees elected by the membership of the association must be public employees and members of the association. 

 

(b) For seven days beginning October 1 of each year preceding a year in which an election is held, the association shall accept at its office filings in person or by mail of candidates for the board of trustees.  A candidate shall submit at the time of filing a nominating petition signed by 25 or more members of the association.  No name may be withdrawn from nomination by the nominee after October 15.  At the request of a candidate for an elected position on the board of trustees, the board shall mail a statement of up to 300 words prepared by the candidate to all persons eligible to vote in the election of the candidate.  The board may adopt policies, subject to review and approval by the secretary of state under paragraph (e), to govern the form and length of these statements, timing of mailings, and deadlines for submitting materials to be mailed.  The secretary of state shall resolve disputes between the board and a candidate concerning application of these policies to a particular statement. 

 

(c) By January 10 of each year in which elections are to be held, the board shall distribute by mail to the members ballots listing the candidates.  No member may vote for more than one candidate for each board position to be filled.  A ballot indicating a vote for more than one person for any position is void.  No special marking may be used on the ballot to indicate incumbents.  Ballots mailed to the association must be postmarked no later than January 31.  The ballot envelopes must be so designated and the ballots must be counted in a manner that ensures that each vote is secret.

 

(d) A candidate who receives contributions or makes expenditures in excess of $100, or has given implicit or explicit consent for any other person to receive contributions or make expenditures in excess of $100 for the purpose of bringing about the candidate's election, shall file a report with the campaign finance and public disclosure board disclosing the source and amount of all contributions to the candidate's campaign.  The campaign finance and public disclosure board shall prescribe forms governing these disclosures.  Expenditures and contributions have the meaning defined in section 10A.01.  These terms do not include the mailing made by the association board on behalf of the candidate.  A candidate shall file a report within 30 days from the day that the results of the election are announced.  The Campaign Finance and Public Disclosure Board shall maintain these reports and make them available for public inspection in the same manner as the board maintains and makes available other reports filed with it. 

 

(e) The secretary of state shall review and approve the procedures defined by the board of trustees for conducting the elections specified in this subdivision, including board policies adopted under paragraph (b). 

 

(f) The board of trustees and the executive director shall undertake their activities consistent with chapter 356A.

 

Sec. 13.  Minnesota Statutes 2008, section 353.71, subdivision 4, is amended to read:

 

Subd. 4.  Repayment of refund.  Any person who has received a refund from the public employees retirement fund Public Employees Retirement Association and who is a member of any public retirement system referred to in subdivision 1, may repay such refund to the public employees retirement fund Public Employees Retirement Association as provided in section 353.35. 

 

Sec. 14.  Minnesota Statutes 2008, section 353.86, subdivision 1, is amended to read:

 

Subdivision 1.  Participation.  Volunteer ambulance service personnel, as defined in section 353.01, subdivision 35, who are or become members of and participants in the public general employees retirement fund or the public employees police and fire fund before July 1, 2002, and make contributions to either of those funds based on compensation for service other than volunteer ambulance service may elect to participate in that same fund with respect to compensation received for volunteer ambulance service, provided that the volunteer ambulance service is


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not credited to another public or private pension plan including the public employees retirement plan established by chapter 353D and provided further that the volunteer ambulance service is rendered for the same governmental unit for which the nonvolunteer ambulance service is rendered. 

 

Sec. 15.  Minnesota Statutes 2008, section 353.86, subdivision 2, is amended to read:

 

Subd. 2.  Election.  Volunteer ambulance service personnel to whom subdivision 1 applies may exercise the election authorized under subdivision 1 within the earlier of the one-year period beginning on July 1, 1989, and extending through June 30, 1990, or the one-year period commencing on the first day of the first month following the start of employment in a position covered by the public general employees retirement fund or the public employees police and fire fund.  The election must be exercised by filing a written notice on a form prescribed by the executive director of the association.

 

Sec. 16.  Minnesota Statutes 2008, section 353.87, subdivision 1, is amended to read:

 

Subdivision 1.  Participation.  Except as provided in subdivision 2, a volunteer firefighter, as defined in section 353.01, subdivision 36, who, on June 30, 1989, was a member of, and a participant in, the public general employees retirement fund or the public employees police and fire fund and was making contributions to either of those funds based, at least in part, on compensation for services performed as a volunteer firefighter shall continue as a member of, and a participant in, the public general employees retirement fund or the public employees police and fire fund and compensation for services performed as a volunteer firefighter shall must be considered salary. 

 

Sec. 17.  Minnesota Statutes 2008, section 353.87, subdivision 2, is amended to read:

 

Subd. 2.  Option.  A volunteer firefighter to whom subdivision 1 applies has the option to terminate membership and future participation in the public general employees retirement fund or the public employees police and fire fund upon filing of a written notice of intention to terminate participation.  Notice must be given on a form prescribed by the executive director of the association and must be filed in the offices of the association not later than June 30, 1990.

 

Sec. 18.  Minnesota Statutes 2008, section 353.88, is amended to read:

 

353.88 PENALTY FOR MEMBERSHIP MISCERTIFICATIONS AND CERTIFICATION FAILURES. 

 

(a) If the board of trustees of the Public Employees Retirement Association, upon the recommendation of the executive director, determines that a governmental subdivision has certified a public employee for membership in the public employees police and fire retirement plan when the public employee was not eligible for that retirement plan coverage, the public employee must be covered by the correct retirement plan for subsequent service, the public employee retains the coverage for the period of the misclassification, and the governmental subdivision shall pay in a lump sum the difference in the actuarial present value of the retirement annuities to which the public employee would have been entitled if the public employee was properly classified.  The governmental subdivision payment is payable within 30 days of the board's determination.  If unpaid, it must be collected under section 353.28.  The lump-sum payment must be deposited in the public general employees retirement fund. 

 

(b) If the executive director of the Public Employees Retirement Association determines that a governmental subdivision has failed to certify a person for retirement plan membership and coverage under this chapter, in addition to the procedures under section 353.27, subdivision 4, 9, 10, 11, 12, 12a, or 12b, the director shall charge a fine of $25 for each membership certification failure. 


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Sec. 19.  Minnesota Statutes 2008, section 354.71, is amended to read:

 

354.71 MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE AID REDEDICATED. 

 

Subdivision 1.  Appropriation.  The positive difference, if any, between the actual state aid paid payable to the MERF division account of the Public Employees Retirement Association with respect to the former Minneapolis Employees Retirement Fund under section 422A.101, subdivision 3, and $8,065,000 annually is appropriated from the general fund to the commissioner of management and budget for deposit in the Teachers Retirement Association to offset all or a portion of the current and future unfunded actuarial accrued liability of the former Minneapolis Teachers Retirement Fund Association.

 

Subd. 2.  Financial requirements.  The appropriation in subdivision 1 is available to the extent that financial requirements of with respect to the MERF division of the Public Employees Retirement Association as the successor of the former Minneapolis Employees Retirement Fund under section 422A.101, subdivision 3, 353.50 have been satisfied.

 

Sec. 20.  Minnesota Statutes 2008, section 354A.011, subdivision 27, is amended to read:

 

Subd. 27.  Teacher.  (a) "Teacher" means any person who renders service for a public school district, other than a charter school, located in the corporate limits of Duluth or St. Paul, as any of the following:

 

(1) a full-time employee in a position for which a valid license from the state Department of Education is required;

 

(2) an employee of the teachers retirement fund association located in the city of the first class unless the employee has exercised the option pursuant to Laws 1955, chapter 10, section 1, to retain membership in the Minneapolis Employees Retirement Fund established pursuant to chapter 422A;

 

(3) a part-time employee in a position for which a valid license from the state Department of Education is required; or

 

(4) a part-time employee in a position for which a valid license from the state Department of Education is required who also renders other nonteaching services for the school district, unless the board of trustees of the teachers retirement fund association determines that the combined employment is on the whole so substantially dissimilar to teaching service that the service may not be covered by the association.

 

(b) The term does not mean any person who renders service in the school district as any of the following:

 

(1) an independent contractor or the employee of an independent contractor;

 

(2) an employee who is a full-time teacher covered by the Teachers Retirement Association or by another teachers retirement fund association established pursuant to this chapter or chapter 354;

 

(3) an employee exempt from licensure pursuant to section 122A.30;

 

(4) an employee who is a teacher in a technical college located in a city of the first class unless the person elects coverage by the applicable first class city teacher retirement fund association under section 354B.21, subdivision 2;

 

(5) a teacher employed by a charter school, irrespective of the location of the school; or


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(6) an employee who is a part-time teacher in a technical college in a city of the first class and who has elected coverage by the applicable first class city teacher retirement fund association under section 354B.21, subdivision 2, but (i) the teaching service is incidental to the regular nonteaching occupation of the person; (ii) the applicable technical college stipulates annually in advance that the part-time teaching service will not exceed 300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300 hours in the fiscal year to which the certification applies. 

 

Sec. 21.  Minnesota Statutes 2008, section 354A.39, is amended to read:

 

354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY. 

 

Any person who has been a member of the Minnesota State Retirement System, the Public Employees Retirement Association including the Public Employees Retirement Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota State Patrol Retirement Association, the legislators retirement plan, the constitutional officers retirement plan, the Minneapolis Employees Retirement Fund, the Duluth Teachers Retirement Fund Association new law coordinated program, the St. Paul Teachers Retirement Fund Association coordinated program, or any other public employee retirement system in the state of Minnesota having a like provision but excluding all other funds providing retirement benefits for police officers or firefighters shall be is entitled when qualified, to an annuity from each fund if the person's total allowable service in all of the funds or in any two or more of the funds totals three or more years, provided that no portion of the allowable service upon which the retirement annuity from one fund is based is used again in the computation for a retirement annuity from another fund and provided further that the person has not taken a refund from any of funds or associations since the person's membership in the fund or association has terminated.  The annuity from each fund or association shall must be determined by the appropriate provisions of the law governing each fund or association, except that the requirement that a person must have at least three years of allowable service in the respective fund or association shall does not apply for the purposes of this section, provided that the aggregate service in two or more of these funds equals three or more years.

 

Sec. 22.  Minnesota Statutes 2008, section 355.095, subdivision 1, is amended to read:

 

Subdivision 1.  Agreement.  (a) The director, on behalf of the state, its political subdivisions, and its other governmental employers, is authorized to enter into an agreement with the Secretary of Health and Human Services to extend the provisions of United States Code, title 42, section 426, 426-1, and 1395c, to the employees in paragraph (b) who meet the requirements of United States Code, title 42, section 418(v)(2) and who do not have coverage by the federal old age, survivors, and disability insurance program for that employment under any previous modification of the agreement or previous Medicare referendum.

 

(b) The applicable employees are:

 

(1) employees who are members of one of the retirement plans in Minnesota Statutes 2008, section 356.30, subdivision 3, except clauses (4) and (8), based on continuous employment since March 31, 1986; and

 

(2) employees of a special authority or district who have been continuously employed by the special authority or district since March 31, 1986.

 

Sec. 23.  Minnesota Statutes 2009 Supplement, section 356.20, subdivision 2, is amended to read:

 

Subd. 2.  Covered public pension plans and funds.  This section applies to the following public pension plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System;


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(2) the general employees retirement plan of the Public Employees Retirement Association;

 

(3) the Teachers Retirement Association;

 

(4) the State Patrol retirement plan;

 

(5) the St. Paul Teachers Retirement Fund Association;

 

(6) the Duluth Teachers Retirement Fund Association;

 

(7) the Minneapolis Employees Retirement Fund;

 

(8) (7) the University of Minnesota faculty retirement plan;

 

(9) (8) the University of Minnesota faculty supplemental retirement plan;

 

(10) (9) the judges retirement fund;

 

(11) (10) a police or firefighter's relief association specified or described in section 69.77, subdivision 1a;

 

(12) (11) a volunteer firefighter relief association governed by section 69.771, subdivision 1;

 

(13) (12) the public employees police and fire plan of the Public Employees Retirement Association;

 

(14) (13) the correctional state employees retirement plan of the Minnesota State Retirement System;

 

(15) (14) the local government correctional service retirement plan of the Public Employees Retirement Association; and

 

(16) (15) the voluntary statewide lump-sum volunteer firefighter retirement plan.

 

Sec. 24.  Minnesota Statutes 2008, section 356.214, subdivision 1, is amended to read:

 

Subdivision 1.  Actuary retention.  (a) The governing board or managing or administrative official of each public pension plan and retirement fund or plan enumerated in paragraph (b) shall contract with an established actuarial consulting firm to conduct annual actuarial valuations and related services.  The principal from the actuarial consulting firm on the contract must be an approved actuary under section 356.215, subdivision 1, paragraph (c). 

 

(b) Actuarial services must include the preparation of actuarial valuations and related actuarial work for the following retirement plans:

 

(1) the teachers retirement plan, Teachers Retirement Association;

 

(2) the general state employees retirement plan, Minnesota State Retirement System;

 

(3) the correctional employees retirement plan, Minnesota State Retirement System;

 

(4) the State Patrol retirement plan, Minnesota State Retirement System;

 

(5) the judges retirement plan, Minnesota State Retirement System;


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(6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement Fund;

 

(7) (6) the public general employees retirement plan, Public Employees Retirement Association, including the MERF division;

 

(8) (7) the public employees police and fire plan, Public Employees Retirement Association;

 

(9) (8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund Association;

 

(10) (9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund Association;

 

(11) (10) the legislators retirement plan, Minnesota State Retirement System;

 

(12) (11) the elective state officers retirement plan, Minnesota State Retirement System; and

 

(13) (12) local government correctional service retirement plan, Public Employees Retirement Association.

 

(c) The contracts must require completion of the annual actuarial valuation calculations on a fiscal year basis, with the contents of the actuarial valuation calculations as specified in section 356.215, and in conformity with the standards for actuarial work adopted by the Legislative Commission on Pensions and Retirement. 

 

The contracts must require completion of annual experience data collection and processing and a quadrennial published experience study for the plans listed in paragraph (b), clauses (1), (2), and (7) (6), as provided for in the standards for actuarial work adopted by the commission.  The experience data collection, processing, and analysis must evaluate the following:

 

(1) individual salary progression;

 

(2) the rate of return on investments based on the current asset value;

 

(3) payroll growth;

 

(4) mortality;

 

(5) retirement age;

 

(6) withdrawal; and

 

(7) disablement.

 

(d) The actuary shall annually prepare a report to the governing or managing board or administrative official and the legislature, summarizing the results of the actuarial valuation calculations.  The actuary shall include with the report any recommendations concerning the appropriateness of the support rates to achieve proper funding of the retirement plans by the required funding dates.  The actuary shall, as part of the quadrennial experience study, include recommendations on the appropriateness of the actuarial valuation assumptions required for evaluation in the study.

 

(e) If the actuarial gain and loss analysis in the actuarial valuation calculations indicates a persistent pattern of sizable gains or losses, the governing or managing board or administrative official shall direct the actuary to prepare a special experience study for a plan listed in paragraph (b), clause (3), (4), (5), (6) (7), (8), (9), (10), (11), or (12), or (13), in the manner provided for in the standards for actuarial work adopted by the commission.


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Sec. 25.  Minnesota Statutes 2008, section 356.30, subdivision 3, is amended to read:

 

Subd. 3.  Covered plans.  This section applies to the following retirement plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;

 

(2) the correctional state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;

 

(3) the unclassified employees retirement program, established under chapter 352D;

 

(4) the State Patrol retirement plan, established under chapter 352B;

 

(5) the legislators retirement plan, established under chapter 3A;

 

(6) the elective state officers retirement plan, established under chapter 352C;

 

(7) the general employees retirement plan of the Public Employees Retirement Association, established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(8) the public employees police and fire retirement plan of the Public Employees Retirement Association, established under chapter 353;

 

(9) the local government correctional service retirement plan of the Public Employees Retirement Association, established under chapter 353E;

 

(10) the Teachers Retirement Association, established under chapter 354;

 

(11) the Minneapolis Employees Retirement Fund, established under chapter 422A;

 

(12) (11) the St. Paul Teachers Retirement Fund Association, established under chapter 354A;

 

(13) (12) the Duluth Teachers Retirement Fund Association, established under chapter 354A; and

 

(14) (13) the judges retirement fund, established by chapter 490. 

 

Sec. 26.  Minnesota Statutes 2008, section 356.302, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) The terms used in this section are defined in this subdivision.

 

(b) "Average salary" means the highest average of covered salary for the appropriate period of credited service that is required for the calculation of a disability benefit by the covered retirement plan and that is drawn from any period of credited service and successive years of covered salary in a covered retirement plan.

 

(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision 7.

 

(d) "Duty-related" means a disabling illness or injury that occurred while the person was actively engaged in employment duties or that arose out of the person's active employment duties.


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(e) "General employee retirement plan" means a covered retirement plan listed in subdivision 7, clauses (1) to (8) (6) and (13) (12).

 

(f) "Occupationally disabled" means the condition of having a medically determinable physical or mental impairment that makes a person unable to satisfactorily perform the minimum requirements of the person's employment position or a substantially similar employment position.

 

(g) "Public safety employee retirement plan" means a covered retirement plan listed in subdivision 7, clauses (9) (7) to (12) (11).

 

(h) "Totally and permanently disabled" means the condition of having a medically determinable physical or mental impairment that makes a person unable to engage in any substantial gainful activity and that is expected to continue or has continued for a period of at least one year or that is expected to result directly in the person's death.

 

Sec. 27.  Minnesota Statutes 2008, section 356.302, subdivision 7, is amended to read:

 

Subd. 7.  Covered retirement plans.  This section applies to the following retirement plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(2) the unclassified state employees retirement program of the Minnesota State Retirement System, established by chapter 352D;

 

(3) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(4) the Teachers Retirement Association, established by chapter 354;

 

(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

 

(6) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;

 

(7) the Minneapolis Employees Retirement Fund, established by chapter 422A;

 

(8) (7) the state correctional employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(9) (8) the State Patrol retirement plan, established by chapter 352B;

 

(10) (9) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;

 

(11) (10) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E; and

 

(12) (11) the judges retirement plan, established by chapter 490. 

 

Sec. 28.  Minnesota Statutes 2008, section 356.303, subdivision 4, is amended to read:

 

Subd. 4.  Covered retirement plans.  This section applies to the following retirement plans:

 

(1) the legislators retirement plan, established by chapter 3A;


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(2) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(3) the correctional state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(4) the State Patrol retirement plan, established by chapter 352B;

 

(5) the elective state officers retirement plan, established by chapter 352C;

 

(6) the unclassified state employees retirement program, established by chapter 352D;

 

(7) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(8) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;

 

(9) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E;

 

(10) the Teachers Retirement Association, established by chapter 354;

 

(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

 

(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A; and

 

(13) the Minneapolis Employees Retirement Fund, established by chapter 422A; and

 

(14) (13) the judges retirement fund, established by chapter 490. 

 

Sec. 29.  Minnesota Statutes 2009 Supplement, section 356.32, subdivision 2, is amended to read:

 

Subd. 2.  Covered retirement plans.  The provisions of this section apply to the following retirement plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;

 

(2) the correctional state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;

 

(3) the State Patrol retirement plan, established under chapter 352B;

 

(4) the general employees retirement plan of the Public Employees Retirement Association, established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(5) the public employees police and fire plan of the Public Employees Retirement Association, established under chapter 353;

 

(6) the Teachers Retirement Association, established under chapter 354;


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(7) the Minneapolis Employees Retirement Fund, established under chapter 422A;

 

(8) (7) the Duluth Teachers Retirement Fund Association, established under chapter 354A; and

 

(9) (8) the St. Paul Teachers Retirement Fund Association, established under chapter 354A.

 

Sec. 30.  Minnesota Statutes 2009 Supplement, section 356.401, subdivision 3, is amended to read:

 

Subd. 3.  Covered retirement plans.  The provisions of this section apply to the following retirement plans:

 

(1) the legislators retirement plan, established by chapter 3A;

 

(2) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(3) the correctional state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(4) the State Patrol retirement plan, established by chapter 352B;

 

(5) the elective state officers retirement plan, established by chapter 352C;

 

(6) the unclassified state employees retirement program, established by chapter 352D;

 

(7) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(8) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;

 

(9) the public employees defined contribution plan, established by chapter 353D;

 

(10) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E;

 

(11) the voluntary statewide lump-sum volunteer firefighter retirement plan, established by chapter 353G;

 

(12) the Teachers Retirement Association, established by chapter 354;

 

(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

 

(14) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;

 

(15) the individual retirement account plan, established by chapter 354B;

 

(16) the higher education supplemental retirement plan, established by chapter 354C;

 

(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;

 

(18) (17) the Minneapolis Police Relief Association, established by chapter 423B;


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(19) (18) the Minneapolis Firefighters Relief Association, established by chapter 423C; and

 

(20) (19) the judges retirement fund, established by chapter 490.

 

Sec. 31.  Minnesota Statutes 2008, section 356.407, subdivision 2, is amended to read:

 

Subd. 2.  Covered funds.  The provisions of this section apply to the following retirement funds:

 

(1) the general employees retirement plan of the Public Employees Retirement Association established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(2) the public employees police and fire plan of the Public Employees Retirement Association established under chapter 353;

 

(3) the State Patrol retirement plan established under chapter 352B;

 

(4) the legislators retirement plan established under chapter 3A;

 

(5) the elective state officers retirement plan established under chapter 352C; and

 

(6) the Teachers Retirement Association established under chapter 354; and.

 

(7) the Minneapolis Employees Retirement Fund established under chapter 422A.

 

Sec. 32.  Minnesota Statutes 2009 Supplement, section 356.415, subdivision 2, is amended to read:

 

Subd. 2.  Covered retirement plans.  The provisions of this section apply to the following retirement plans:

 

(1) the legislators retirement plan established under chapter 3A;

 

(2) the correctional state employees retirement plan of the Minnesota State Retirement System established under chapter 352;

 

(3) the general state employees retirement plan of the Minnesota State Retirement System established under chapter 352;

 

(4) the State Patrol retirement plan established under chapter 352B;

 

(5) the elective state officers retirement plan established under chapter 352C;

 

(6) the general employees retirement plan of the Public Employees Retirement Association established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(7) the public employees police and fire retirement plan of the Public Employees Retirement Association established under chapter 353;

 

(8) the local government correctional employees retirement plan of the Public Employees Retirement Association established under chapter 353E;

 

(9) the teachers retirement plan established under chapter 354; and


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(10) the judges retirement plan established under chapter 490.

 

Sec. 33.  Minnesota Statutes 2008, section 356.431, subdivision 1, is amended to read:

 

Subdivision 1.  Lump-sum postretirement payment conversion.  For benefits paid after December 31, 2001, to eligible persons under sections section 356.42 and 356.43, the amount of the most recent lump-sum benefit payable to an eligible recipient under sections section 356.42 and 356.43 must be divided by 12.  The result must be added to the monthly annuity or benefit otherwise payable to an eligible recipient, must become a permanent part of the benefit recipient's pension, and must be included in any pension benefit subject to future increases.

 

Sec. 34.  Minnesota Statutes 2008, section 356.465, subdivision 3, is amended to read:

 

Subd. 3.  Covered retirement plans.  The provisions of this section apply to the following retirement plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System established under chapter 352;

 

(2) the correctional state employees retirement plan of the Minnesota State Retirement System established under chapter 352;

 

(3) the State Patrol retirement plan established under chapter 352B;

 

(4) the legislators retirement plan established under chapter 3A;

 

(5) the judges retirement plan established under chapter 490;

 

(6) the general employees retirement plan of the Public Employees Retirement Association established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(7) the public employees police and fire plan of the Public Employees Retirement Association established under chapter 353;

 

(8) the teachers retirement plan established under chapter 354;

 

(9) the Duluth Teachers Retirement Fund Association established under chapter 354A;

 

(10) the St. Paul Teachers Retirement Fund Association established under chapter 354A;

 

(11) the Minneapolis Employees Retirement Fund established under chapter 422A;

 

(12) (11) the Minneapolis Firefighters Relief Association established under chapter 423C;

 

(13) (12) the Minneapolis Police Relief Association established under chapter 423B; and

 

(14) (13) the local government correctional service retirement plan of the Public Employees Retirement Association established under chapter 353E.

 

Sec. 35.  Minnesota Statutes 2008, section 356.64, is amended to read:

 

356.64 REAL ESTATE INVESTMENTS. 

 

(a) Notwithstanding any law to the contrary, any public pension plan whose assets are not invested by the State Board of Investment may invest its funds in Minnesota situs nonfarm real estate ownership interests or loans secured by mortgages or deeds of trust if the investment is consistent with section 356A.04. 


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(b) Except to the extent authorized in the case of the Minneapolis Employees Retirement Fund under section 422A.05, subdivision 2c, paragraph (a), An investment otherwise authorized by this section must also comply with the requirements and limitations of section 11A.24, subdivision 6. 

 

Sec. 36.  Minnesota Statutes 2008, section 356.65, subdivision 2, is amended to read:

 

Subd. 2.  Disposition of abandoned amounts.  Any unclaimed public pension fund amounts existing in any public pension fund are presumed to be abandoned, but are not subject to the provisions of sections 345.31 to 345.60.  Unless the benefit plan of the public pension fund specifically provides for a different disposition of unclaimed or abandoned funds or amounts, any unclaimed public pension fund amounts cancel and must be credited to the public pension fund.  If the unclaimed public pension fund amount exceeds $25 and the inactive or former member again becomes a member of the applicable public pension plan or applies for a retirement annuity under section 3A.12, 352.72, 352B.30, 353.71, 354.60, or 356.30, or 422A.16, subdivision 8, whichever applies, the canceled amount must be restored to the credit of the person. 

 

Sec. 37.  Minnesota Statutes 2008, section 356.91, is amended to read:

 

356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION. 

 

(a) Upon written authorization of a person receiving an annuity from a public pension fund administered by the Minnesota State Retirement System, or the Public Employees Retirement Association, or the Minneapolis Employees Retirement Fund, the executive director of the public pension fund may deduct from the retirement annuity an amount requested by the annuitant to be paid as dues to any labor organization that is an exclusive bargaining agent representing public employees or an organization representing retired public employees of which the annuitant is a member and shall pay the amount to the organization so designated by the annuitant.

 

(b) A pension fund and the plan fiduciaries which authorize or administer deductions of dues payments under paragraph (a) are not liable for failure to properly deduct or transmit the dues amounts, provided that the fund and the fiduciaries have acted in good faith.

 

(c) The deductions under paragraph (a) may occur no more frequently than two times per year and may not be used for political purposes.

 

(d) Any labor organization specified in paragraph (a) shall reimburse the public pension fund for the administrative expense of withholding premium amounts.

 

Sec. 38.  Minnesota Statutes 2009 Supplement, section 356.96, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) Unless the language or context clearly indicates that a different meaning is intended, for the purpose of this section, the terms in paragraphs (b) to (e) have the meanings given them.

 

(b) "Chief administrative officer" means the executive director of a covered pension plan or the executive director's designee or representative.

 

(c) "Covered pension plan" means a plan enumerated in section 356.20, subdivision 2, clauses (1) to (4), (10) (9), and (13) (12) to (16) (15), but does not mean the deferred compensation plan administered under sections 352.965 and 352.97 or to the postretirement health care savings plan administered under section 352.98.

 

(d) "Governing board" means the Board of Trustees of the Public Employees Retirement Association, the Board of Trustees of the Teachers Retirement Association, or the Board of Directors of the Minnesota State Retirement System.


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(e) "Person" includes an active, retired, deferred, or nonvested inactive participant in a covered pension plan or a beneficiary of a participant, or an individual who has applied to be a participant or who is or may be a survivor of a participant, or a state agency or other governmental unit that employs active participants in a covered pension plan.

 

Sec. 39.  Minnesota Statutes 2008, section 473.511, subdivision 3, is amended to read:

 

Subd. 3.  Existing sanitary districts, joint sewer boards.  Effective January 1, 1971, the corporate existence of the Minneapolis-St. Paul Sanitary District, the North Suburban Sanitary Sewer District, and any joint board created by agreement among local government units pursuant to under section 471.59, to provide interceptors and treatment works for such local government units, shall terminate.  All persons regularly employed by such sanitary districts and joint boards on that date or on any earlier date on which the former waste control commission pursuant to subdivisions 1 and 2 assumed ownership and control of any interceptors or treatment works owned or operated by such sanitary districts and joint boards, and who are employees of the commission on July 1, 1994, shall be are employees of the council, and may at their option become members of the Minnesota State Retirement System or may continue as members of a public retirement association under chapter 422A or any other law, to which they belonged before such date, and shall retain all pension rights which they may have under such latter laws, and all other rights to which they are entitled by contract or law.  Members of trades who are employed by the former Metropolitan Waste Control Commission, who have trade union pension coverage pursuant to under a collective bargaining agreement, and who elected exclusion from coverage pursuant to under section 473.512, or who are first employed after July 1, 1977, shall may not be covered by the Minnesota State Retirement System.  The council shall make the employer's contributions to pension funds of its employees.  Such employees shall perform such duties as may be prescribed by the council.  All funds of such sanitary districts and joint boards then on hand, and all subsequent collections of taxes, special assessments or service charges levied or imposed by or for such sanitary districts or joint boards shall must be transferred to the council.  The local government units otherwise entitled to such cash, taxes, assessments or service charges shall must be credited with such amounts, and such credits shall must be offset against any amounts to be paid by them to the council as provided in section 473.517.  The former Metropolitan Waste Control Commission, and on July 1, 1994, the council shall succeed to and become vested by action of law with all right, title and interest in and to any property, real or personal, owned or operated by such sanitary districts and joint boards.  Prior to that date the proper officers of such sanitary districts and joint boards, or the former Metropolitan Waste Control Commission, shall execute and deliver to the council all deeds, conveyances, bills of sale, and other documents or instruments required to vest in the council good and marketable title to all such real or personal property; provided that vesting of the title shall must occur by operation of law and failure to execute and deliver the documents shall does not affect the vesting of title in the former Metropolitan Waste Control Commission or the council on the dates indicated in this subdivision.  The council shall become obligated to pay or assume all bonded or other debt and contract obligations incurred by the former Metropolitan Waste Control Commission, or by such sanitary districts and joint boards, or incurred by local government units for the acquisition or betterment of any interceptors or treatment works owned or operated by such sanitary districts or joint boards. 

 

Sec. 40.  Minnesota Statutes 2008, section 473.606, subdivision 5, is amended to read:

 

Subd. 5.  Employees, others, affirmative action; prevailing wage.  The corporation shall have the power to appoint engineers and other consultants, attorneys, and such other officers, agents, and employees as it may see fit, who shall perform such duties and receive such compensation as the corporation may determine, and be removable at the pleasure of the corporation.  The corporation shall must adopt an affirmative action plan, which shall be submitted to the appropriate agency or office of the state for review and approval.  The plan shall must include a yearly progress report to the agency or office.  Officers and employees of the corporation who cannot qualify and participate in the municipal employees retirement fund under chapter 422A, shall be separated from service at the retirement age applicable to officers or employees of the state of Minnesota in the classified service of the state civil service as provided in section 43A.34, or as the same may from time to time be amended, regardless of the provisions of the Veteran's Preference Act.  Whenever the corporation performs any work within the limits of a city of the first class, or establishes a minimum wage for skilled or unskilled labor in the specifications or any contract for work within one of the cities, the rate of pay to such skilled and unskilled labor shall must be the prevailing rate of wage for such labor in that city. 


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Sec. 41.  Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:

 

Subd. 6.  Certain purposes.  Any municipality may issue bonds for paying judgments against it; for refunding outstanding bonds; for funding floating indebtedness; for funding actuarial liabilities to pay postemployment benefits to employees or officers after their termination of service; or for funding all or part of the municipality's current and future unfunded liability for a pension or retirement fund or plan referred to in section 356.20, subdivision 2, as those liabilities are most recently computed pursuant to under sections 356.215 and 356.216.  The board of trustees or directors of a pension fund or relief association referred to in section 69.77 or chapter 422A must consent and must be a party to any contract made under this section with respect to the fund held by it for the benefit of and in trust for its members.  For purposes of this section, the term "postemployment benefits" means benefits giving rise to a liability under Statement No. 45 of the Governmental Accounting Standards Board. 

 

Sec. 42.  Minnesota Statutes 2009 Supplement, section 480.181, subdivision 2, is amended to read:

 

Subd. 2.  Election to retain insurance and benefits; retirement.  (a) Before a person is transferred to state employment under this section, the person may elect to do either or both of the following:

 

(1) keep life insurance; hospital, medical, and dental insurance; and vacation and sick leave benefits and accumulated time provided by the county instead of receiving benefits from the state under the judicial branch personnel rules; or

 

(2) remain a member of the general employees retirement plan of the Public Employees Retirement Association or the Minneapolis employees retirement fund MERF division of the Public Employees Retirement Association instead of joining the Minnesota State Retirement System.

 

Employees who make an election under clause (1) remain on the county payroll, but the state shall reimburse the county on a quarterly basis for the salary and cost of the benefits provided by the county.  The state shall make the employer contribution to the general employees retirement plan of the Public Employees Retirement Association or the employer contribution under section 422A.101 353.50, subdivision 1a 7, paragraphs (c) and (d), to the Minneapolis Employees Retirement Fund MERF division of the Public Employees Retirement Association on behalf of employees who make an election under clause (2). 

 

(b) An employee who makes an election under paragraph (a), clause (1), may revoke the election, once, at any time, but if the employee revokes the election, the employee cannot make another election.  An employee who makes an election under paragraph (a), clause (2), may revoke the election at any time within six months after the person becomes a state employee.  Once an employee revokes this election, the employee cannot make another election.

 

(c) The Supreme Court, after consultation with the Judicial Council, the commissioner of management and budget, and the executive directors of the Public Employees Retirement Association and the Minnesota State Retirement Association, shall adopt procedures for making elections under this section.

 

(d) The Supreme Court shall notify all affected employees of the options available under this section.  The executive directors of the Public Employees Retirement Association and the Minnesota State Retirement System shall provide counseling to affected employees on the effect of making an election to remain a member of the Public Employees Retirement Association.

 

Sec. 43.  APPROPRIATIONS MADE ONLY ONCE. 

 

If the appropriations made in this act are enacted more than once in the 2010 regular session, these appropriations must be given effect only once.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.


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Sec. 44.  EFFECTIVE DATE. 

 

Sections 1 to 42 are effective June 30, 2010."

 

Delete the title and insert:

 

"A bill for an act relating to retirement; Minneapolis Employees Retirement Fund; transfer of administrative functions to the Public Employees Retirement Association; creation of MERF consolidation account within the Public Employees Retirement Association; making conforming changes; appropriating money; amending Minnesota Statutes 2008, sections 11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, subdivision 8; 69.021, subdivision 10; 126C.41, subdivision 3; 256D.21; 353.01, subdivision 2b, by adding subdivisions; 353.03, subdivision 1; 353.05; 353.27, as amended; 353.34, subdivisions 1, 6; 353.37, subdivisions 1, 2, 3, 4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.71, subdivision 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 354.71; 354A.011, subdivision 27; 354A.39; 355.095, subdivision 1; 356.214, subdivision 1; 356.215, subdivision 8; 356.30, subdivision 3; 356.302, subdivisions 1, 7; 356.303, subdivision 4; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, subdivision 3; 356.64; 356.65, subdivision 2; 356.91; 422A.101, subdivision 3; 422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision 6; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 1; 69.031, subdivision 5; 352.01, subdivision 2b; 353.01, subdivision 2a; 353.06; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 356.401, subdivision 3; 356.415, subdivision 2; 356.96, subdivision 1; 480.181, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 353; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 422A.08, subdivision 5."

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

 

      The report was adopted.

 

 

Lenczewski from the Committee on Taxes to which was referred:

 

H. F. No. 2971, A bill for an act relating to taxation; making technical, administrative, and clarifying changes to individual income, corporate franchise, estate, sales and use, gross receipts, cigarette, tobacco, insurance, property, credits, payments, minerals, local government aid, job opportunity building zones, emergency debt certificates, and various taxes and tax-related provisions; amending Minnesota Statutes 2008, sections 60A.209, subdivision 1; 270C.34, subdivision 1; 270C.87; 272.029, subdivision 7; 275.71, subdivision 5; 279.37, subdivision 1; 289A.08, subdivision 7; 289A.12, subdivision 14; 289A.30, subdivision 2; 289A.60, subdivision 7; 290.067, subdivision 1; 290.0921, subdivision 3; 295.55, subdivisions 2, 3; 297A.62, by adding a subdivision; 297A.665; 297A.68, subdivision 39; 297A.70, subdivision 13; 297F.07, subdivision 4; 297I.30, subdivisions 1, 2, 7, 8; 297I.40, subdivisions 1, 5; 298.282, subdivision 1; 469.319, subdivision 5; 469.3193; Minnesota Statutes 2009 Supplement, sections 134.34, subdivision 4; 273.114, subdivision 2; 275.065, subdivision 3; 275.70, subdivision 5; 289A.18, subdivision 1; 290.01, subdivisions 19a, 19b, 19d; 290.06, subdivision 2c; 290.0671, subdivision 1; 290.091, subdivision 2; 297I.35, subdivision 2; 475.755; 477A.013, subdivision 8; Laws 2001, First Special Session chapter 5, article 3, section 50, as amended; Laws 2009, chapter 88, article 4, section 5; repealing Minnesota Statutes 2008, section 297I.30, subdivisions 4, 5, 6.

 

Reported the same back with the following amendments:


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12155


 

Page 32, after line 10, insert:

 

"Sec. 4.  Minnesota Statutes 2008, section 273.113, subdivision 3, is amended to read:

 

Subd. 3.  Reimbursement for lost revenue.  The county auditor shall certify to the commissioner of revenue, as part of the abstracts of tax lists required to be filed with the commissioner under section 275.29, the amount of tax lost to the county from the property tax credit under subdivision 2.  Any prior year adjustments must also be certified in the abstracts of tax lists.  The commissioner of revenue shall review the certifications to determine their accuracy.  The commissioner may make the changes in the certification that are considered necessary or return a certification to the county auditor for corrections.  The commissioner shall reimburse each taxing district, other than school districts, for the taxes lost.  The payments must be made at the time provided in section 473H.10 for payment to taxing jurisdictions in the same proportion that the ad valorem tax is distributed.  Reimbursements to school districts must be made as provided in section 273.1392.  The amount necessary to make the reimbursements under this section is annually appropriated from the general fund to the commissioner of revenue.

 

EFFECTIVE DATE.  This section is effective retroactively for taxes payable in 2009 and thereafter."

 

Page 32, after line 26, insert:

 

"Sec. 6.  Minnesota Statutes 2008, section 273.1392, is amended to read:

 

273.1392 PAYMENT; SCHOOL DISTRICTS. 

 

The amounts of bovine tuberculosis credit reimbursements under section 273.113; conservation tax credits under section 273.119; disaster or emergency reimbursement under sections 273.1231 to 273.1235; homestead and agricultural credits under section 273.1384; aids and credits under section 273.1398; wetlands reimbursement under section 275.295; enterprise zone property credit payments under section 469.171; and metropolitan agricultural preserve reduction under section 473H.10 for school districts, shall be certified to the Department of Education by the Department of Revenue.  The amounts so certified shall be paid according to section 127A.45, subdivisions 9 and 13. 

 

EFFECTIVE DATE.  This section is effective retroactively for taxes payable in 2009 and thereafter."

 

Renumber the sections in sequence

 

Correct the title numbers accordingly

 

 

With the recommendation that when so amended the bill pass.

 

      The report was adopted.

 

 

Lenczewski from the Committee on Taxes to which was referred:

 

H. F. No. 2972, A bill for an act relating to taxation; making policy, technical, administrative, and clarifying changes to individual income, corporate franchise, sales and use, property, petroleum, cigarette, tobacco, insurance, local taxes, and other taxes and tax-related provisions; amending Minnesota Statutes 2008, sections 82B.035, subdivision 2; 270.41, subdivision 5; 270C.94, subdivision 3; 272.025, subdivisions 1, 3; 272.029, subdivision 4; 278.05, by adding a subdivision; 279.01, subdivision 3; 289A.09, subdivision 2; 289A.50, subdivisions 2, 4; 297A.995, subdivisions 10, 11; 297F.01, subdivision 22a; 297F.04, by adding a subdivision; 297F.25, subdivision 1;


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12156


 

297I.01, subdivision 9; 297I.05, subdivision 7; 297I.65, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 273.124, subdivision 3a; proposing coding for new law in Minnesota Statutes, chapters 296A; 645.

 

Reported the same back with the following amendments:

 

Page 1, line 16, after "INCOME" insert ", ESTATE,"

 

Page 3, after line 11, insert: 

 

"Sec. 2.  Minnesota Statutes 2008, section 289A.10, subdivision 1, is amended to read:

 

Subdivision 1.  Return required.  In the case of a decedent who has an interest in property with a situs in Minnesota, the personal representative must submit a Minnesota estate tax return to the commissioner, on a form prescribed by the commissioner, if:

 

(1) a federal estate tax return is required to be filed; or

 

(2) the federal gross estate exceeds $700,000 for estates of decedents dying after December 31, 2001, and before January 1, 2004; $850,000 for estates of decedents dying after December 31, 2003, and before January 1, 2005; $950,000 for estates of decedents dying after December 31, 2004, and before January 1, 2006; and $1,000,000 for estates of decedents dying after December 31, 2005.

 

The return must contain a computation of the Minnesota estate tax due.  The return must be signed by the personal representative.

 

EFFECTIVE DATE.  This section is effective for estates of decedents dying after December 31, 2005."

 

Page 8, line 31, delete "(a)"

 

Page 9, line 1, delete "(b)" and insert "(a)"

 

Page 9, line 3, delete "(c)" and insert "(b)"

 

Page 9, line 9, delete "(d)" and insert "(c)"

 

Page 9, line 11, delete "(e)" and insert "(d)" and delete everything after "lines"

 

Page 9, delete lines 12 to 15

 

Page 9, line 16, delete "companies" and insert "insurance includes all charges, commissions, and fees received by the licensee"

 

Page 9, line 17, delete "and" and insert "nor"

 

Page 12, delete section 7

 

Renumber the sections in sequence and correct the internal references


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12157


 

Amend the title as follows:

 

Page 1, line 3, after "franchise," insert "estate,"

 

Correct the title numbers accordingly

 

 

With the recommendation that when so amended the bill pass.

 

      The report was adopted.

 

 

Lenczewski from the Committee on Taxes to which was referred:

 

H. F. No. 3329, A bill for an act relating to education finance; clarifying the retired employee health benefits levy calculation; amending Minnesota Statutes 2009 Supplement, section 126C.41, subdivision 2.

 

Reported the same back with the recommendation that the bill pass.

 

      The report was adopted.

 

 

Lenczewski from the Committee on Taxes to which was referred:

 

H. F. No. 3330, A bill for an act relating to education; clarifying revenue definitions for school districts and charter schools; amending Minnesota Statutes 2008, section 125A.79, subdivision 1.

 

Reported the same back with the recommendation that the bill pass.

 

      The report was adopted.

 

 

Solberg from the Committee on Ways and Means to which was referred:

 

H. F. No. 3796, A bill for an act relating to public safety; appropriating money to match federal disaster assistance made available through FEMA Public Assistance Program. 

 

Reported the same back with the recommendation that the bill pass.

 

      The report was adopted.

 

 

Solberg from the Committee on Ways and Means to which was referred:

 

H. F. No. 3832, A bill for an act relating to human services; making contingent appropriations; amending Minnesota Statutes 2008, sections 254B.03, by adding a subdivision; 256B.0625, subdivision 22; 256B.19, subdivision 1c; 256L.15, subdivision 1; Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 1a; Laws 2005, First Special Session chapter 4, article 8, section 66, as amended; Laws 2009, chapter 79, article 5, sections 17; 18; 22; article 8, section 2; Laws 2009, chapter 173, article 1, section 17.

 

Reported the same back with the recommendation that the bill pass.

 

      The report was adopted.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12158


 

Carlson from the Committee on Finance to which was referred:

 

H. F. No. 3834, A bill for an act relating to state government; requiring the commissioner of Minnesota Management and Budget to provide a cash flow forecast to the governor and legislature; proposing coding for new law in Minnesota Statutes, chapter 16A.

 

Reported the same back with the recommendation that the bill pass.

 

      The report was adopted.

 

 

Carlson from the Committee on Finance to which was referred:

 

S. F. No. 2891, A bill for an act relating to corrections; adopting the Interstate Compact for Juveniles; proposing coding for new law in Minnesota Statutes, chapter 260.

 

Reported the same back with the recommendation that the bill pass.

 

      The report was adopted.

 

 

Solberg from the Committee on Ways and Means to which was referred:

 

S. F. No. 3379, A bill for an act relating to public safety; appropriating money to match federal disaster assistance made available through FEMA Public Assistance Program. 

 

Reported the same back with the recommendation that the bill pass.

 

      The report was adopted.

 

 

SECOND READING OF HOUSE BILLS

 

 

      H. F. Nos. 2227, 2971, 2972, 3329, 3330, 3796, 3832 and 3834 were read for the second time.

 

 

SECOND READING OF SENATE BILLS

 

 

      S. F. Nos. 1659, 1770, 2430, 2634, 2725, 2839, 3043, 3318, 3361, 2891 and 3379 were read for the second time.

 

 

INTRODUCTION AND FIRST READING OF HOUSE BILLS

 

 

      The following House File was introduced:

 

 

      Simon and Hoppe introduced:

 

      H. F. No. 3838, A bill for an act relating to drug and alcohol testing; modifying provisions related to professional athletes; amending Minnesota Statutes 2008, section 181.955, by adding a subdivision.

 

      The bill was read for the first time and referred to the Committee on Commerce and Labor.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12159


 

      Morrow moved that the House recess subject to the call of the Chair.  The motion prevailed.

 

 

RECESS

 

 

RECONVENED

 

      The House reconvened and was called to order by Speaker pro tempore Sertich.

 

 

      Hilstrom was excused between the hours of 11:30 a.m. and 2:15 p.m.

 

 

MESSAGES FROM THE SENATE

 

 

      The following messages were received from the Senate:

 

 

Madam Speaker: 

 

      I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested: 

 

      H. F. No. 3056, A bill for an act relating to health; modifying provider peer grouping timelines and system; amending Minnesota Statutes 2008, sections 62U.04, subdivisions 3, 9; 256B.0754, subdivision 2; repealing Minnesota Statutes 2009 Supplement, section 256B.032.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONCURRENCE AND REPASSAGE

 

      Norton moved that the House concur in the Senate amendments to H. F. No. 3056 and that the bill be repassed as amended by the Senate.  The motion prevailed.

 

 

      H. F. No. 3056, A bill for an act relating to health; modifying the provider peer grouping timelines and system; adding provision to agricultural cooperative health plan for farmers; requiring reports; amending Minnesota Statutes 2008, sections 62U.04, subdivisions 3, 9; 256B.0754, subdivision 2; Laws 2007, chapter 147, article 12, section 14; repealing Minnesota Statutes 2009 Supplement, section 256B.032.

 

 

      The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 131 yeas and 2 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12160


 

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Buesgens

Emmer


 

 

      The bill was repassed, as amended by the Senate, and its title agreed to.

 

 

Madam Speaker:

 

      I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

 

      S. F. No. 271.

 

      The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said Senate File is herewith transmitted to the House.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 271

 

A bill for an act relating to state government; providing additional whistleblower protection to state employees; amending Minnesota Statutes 2008, section 181.932, subdivision 1.

 

May 8, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 271 report that we have agreed upon the items in dispute and recommend as follows:


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12161


 

That the House recede from its amendment and that S. F. No. 271 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  [43A.015] CLASSIFIED EMPLOYEE COMMUNICATIONS WITH DECISION MAKERS. 

 

State employees in the classified service are expected to provide objective information in a timely manner to both executive and legislative decision makers.  State employees shall provide assistance to legislative decision makers in a manner that is consistent with the need to perform the employees' other duties.  A classified state employee shall make a good-faith effort to maintain the confidentiality of budget or policy discussions with a member of the legislature or the member's staff person, unless otherwise directed by that member or staff person.  This section does not authorize or require an employee to disclose data otherwise protected by law.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 2.  Minnesota Statutes 2008, section 181.932, subdivision 1, is amended to read:

 

Subdivision 1.  Prohibited action.  An employer shall not discharge, discipline, threaten, otherwise discriminate against, or penalize an employee regarding the employee's compensation, terms, conditions, location, or privileges of employment because:

 

(1) the employee, or a person acting on behalf of an employee, in good faith, reports a violation or suspected violation of any federal or state law or rule adopted pursuant to law to an employer or to any governmental body or law enforcement official;

 

(2) the employee is requested by a public body or office to participate in an investigation, hearing, inquiry;

 

(3) the employee refuses an employer's order to perform an action that the employee has an objective basis in fact to believe violates any state or federal law or rule or regulation adopted pursuant to law, and the employee informs the employer that the order is being refused for that reason;

 

(4) the employee, in good faith, reports a situation in which the quality of health care services provided by a health care facility, organization, or health care provider violates a standard established by federal or state law or a professionally recognized national clinical or ethical standard and potentially places the public at risk of harm; or

 

(5) a public employee communicates the findings of a scientific or technical study that the employee, in good faith, believes to be truthful and accurate, including reports to a governmental body or law enforcement official.; or

 

(6) an employee in the classified service of state government communicates information that the employee, in good faith, believes to be truthful and accurate, and that relates to state services, including the financing of state services to:

 

(i) a legislator or the legislative auditor; or

 

(ii) a constitutional officer.

 

The disclosures protected pursuant to this section do not authorize the disclosure of data otherwise protected by law.

 

EFFECTIVE DATE.  This section is effective the day following final enactment."


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12162


 

Delete the title and insert:

 

"A bill for an act relating to state government; establishing expectations for classified employees as nonpartisan resources to all decision makers; providing additional whistleblower protection to state employees; amending Minnesota Statutes 2008, section 181.932, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 43A."

 

 

We request the adoption of this report and repassage of the bill.

 

Senate Conferees:  Mary Olson, D. Scott Dibble and Warren Limmer.

 

House Conferees:  Diane Loeffler, Phyllis Kahn and Tony Cornish.

 

 

      Loeffler moved that the report of the Conference Committee on S. F. No. 271 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

      Speaker pro tempore Sertich called Juhnke to the Chair.

 

 

S. F. No. 271, A bill for an act relating to state government; providing additional whistleblower protection to state employees; amending Minnesota Statutes 2008, section 181.932, subdivision 1.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 90 yeas and 43 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Urdahl

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Gunther


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12163


 

Hackbarth

Hamilton

Holberg

Hoppe

Kelly

Kiffmeyer

Kohls

Lanning

Loon

Mack

Magnus

McFarlane

McNamara

Murdock

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Torkelson

Westrom

Zellers


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

Madam Speaker:

 

      I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

 

      S. F. No. 2505.

 

      The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said Senate File is herewith transmitted to the House.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 2505

 

A bill for an act relating to child care; appropriating money to provide statewide child care provider training, coaching, consultation, and supports to prepare for the voluntary Minnesota quality rating system. 

 

May 7, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 2505 report that we have agreed upon the items in dispute and recommend as follows:

 

That the Senate concur in the House amendments and that S. F. No. 2505 be further amended as follows:

 

Page 6, lines 21 and 22, delete "five-year-old children" and insert "entering kindergarteners"

 

Page 6, line 35, after the period, insert "Work on this duty will begin in fiscal year 2012."

 

Page 7, line 2, delete "2012" and insert "2013"

 

 

We request the adoption of this report and repassage of the bill.

 

Senate Conferees:  Terri Bonoff, Geoff Michel and Tom Saxhaug.

 

House Conferees:  Nora Slawik, Sandra Peterson and Bud Nornes.

 

 

      Slawik moved that the report of the Conference Committee on S. F. No. 2505 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12164


 

      S. F. No. 2505, A bill for an act relating to child care; appropriating money to provide statewide child care provider training, coaching, consultation, and supports to prepare for the voluntary Minnesota quality rating system.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 103 yeas and 30 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, P.

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Demmer

Dill

Dittrich

Doepke

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Gunther

Hamilton

Hansen

Hausman

Haws

Hayden

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Anderson, S.

Beard

Brod

Buesgens

Davids

Dean

Dettmer

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Hackbarth

Holberg

Hoppe

Howes

Kelly

Kiffmeyer

Kohls

Lanning

Mack

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Zellers


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

Madam Speaker:

 

      I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

 

      S. F. No. 2510.

 

      The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said Senate File is herewith transmitted to the House.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate


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CONFERENCE COMMITTEE REPORT ON S. F. NO. 2510

 

A bill for an act relating to economic development; amending the definition of green economy to include the concept of green chemistry; creating a fast-action economic response team; expanding the Minnesota investment fund; removing a grant program restriction; expanding loan program to veteran-owned small businesses; creating the Minnesota Science and Technology Authority; providing for a comparative study of state laws affecting small business start-ups; modifying certain unemployment insurance administrative, benefit, and tax provisions; protecting customers from injuries resulting from use of inflatable play equipment; modifying labor and industry licensing and certain license fee provisions; modifying enforcement requirements of the State Building Code; modifying the requirements of the Manufactured Home Building Code; allowing expedited rulemaking; providing for licensing and regulation of individuals engaged in mortgage loan origination or mortgage loan business; providing for licensing and regulation of appraisal management companies; providing for property acquisition from petroleum tank fund proceeds; clarifying requirements for granting additional cable franchises; regulating cadmium in children's jewelry; regulating the sale and termination of portable electronics insurance; authorizing amendments to a municipal comprehensive plan for affordable housing; amending Iron Range resources provisions; requiring certain reports; appropriating money; amending Minnesota Statutes 2008, sections 58.04, subdivision 1; 58.08, by adding a subdivision; 58.09; 58.10, subdivision 1; 58.11; 60K.36, subdivision 2; 60K.38, subdivision 1; 82B.05, subdivision 5, by adding a subdivision; 82B.06; 115C.08, subdivision 1; 116J.437, subdivision 1; 116J.8731, subdivisions 1, 4; 116J.996; 181.723, subdivision 5; 238.08, subdivision 1; 268.035, subdivision 20; 268.046, subdivision 1; 268.051, subdivisions 2, 5, 7; 268.07, as amended; 268.085, subdivision 9; 326B.106, subdivision 9; 326B.133, subdivisions 1, 3, 8, 11, by adding subdivisions; 326B.16; 326B.197; 326B.33, subdivisions 18, 20, 21; 326B.42, by adding subdivisions; 326B.44; 326B.46, as amended; 326B.47; 326B.475, subdivision 2; 326B.50, by adding subdivisions; 326B.54; 326B.55, as amended if enacted; 326B.56, as amended; 326B.805, subdivision 6; 326B.83, subdivisions 1, 3, 6; 326B.865; 326B.921, subdivisions 2, 4, 7; 326B.922; 326B.978, subdivision 2, by adding a subdivision; 327.31, subdivision 17, by adding subdivisions; 327.32, subdivision 1, by adding subdivisions; 327B.04, subdivision 2; 462.355, subdivision 3; Minnesota Statutes 2009 Supplement, sections 58.06, subdivision 2; 60K.55, subdivision 2; 82B.05, subdivision 1; 115C.08, subdivision 4; 116J.8731, subdivision 3; 116L.20, subdivision 1; 268.035, subdivision 19a; 268.052, subdivision 2; 268.053, subdivision 1; 268.085, subdivision 1; 268.136, subdivision 1; 326B.33, subdivision 19; 326B.475, subdivision 4; 326B.49, subdivision 1; 326B.58; 326B.815, subdivision 1; 326B.86, subdivision 1; 326B.94, subdivision 4; 326B.986, subdivision 5; 327B.04, subdivisions 7, 7a, 8; 327B.041; Laws 2009, chapter 78, article 1, section 3, subdivision 2; Laws 2010, chapter 216, section 58; proposing coding for new law in Minnesota Statutes, chapters 60K; 116J; 184B; 325E; 326B; proposing coding for new law as Minnesota Statutes, chapters 58A; 82C; 116W; repealing Minnesota Statutes 2008, sections 116J.657; 326B.133, subdivisions 9, 10; 326B.37, subdivision 13; 326B.475, subdivisions 5, 6; 326B.56, subdivision 3; 326B.885, subdivisions 3, 4; 326B.976; 327.32, subdivision 4; 327C.07, subdivisions 3, 3a, 8; Minnesota Statutes 2009 Supplement, sections 58.126; 326B.56, subdivision 4; Laws 2010, chapter 215, article 9, section 3; Minnesota Rules, parts 1301.0500; 1301.0900; 1301.1100, subparts 2, 3, 4; 1350.7200, subpart 3; 1350.8000, subpart 2.

 

May 8, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 2510 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendments and that S. F. No. 2510 be further amended as follows:


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Delete everything after the enacting clause and insert:

 

"ARTICLE 1

 

EMPLOYMENT AND ECONOMIC DEVELOPMENT

 

Section 1.  Minnesota Statutes 2008, section 116J.437, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) For the purpose of this section, the following terms have the meanings given.

 

(b) "Green economy" means products, processes, methods, technologies, or services intended to do one or more of the following:

 

(1) increase the use of energy from renewable sources, including through achieving the renewable energy standard established in section 216B.1691;

 

(2) achieve the statewide energy-savings goal established in section 216B.2401, including energy savings achieved by the conservation investment program under section 216B.241;

 

(3) achieve the greenhouse gas emission reduction goals of section 216H.02, subdivision 1, including through reduction of greenhouse gas emissions, as defined in section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, but not limited to, carbon capture, storage, or sequestration;

 

(4) monitor, protect, restore, and preserve the quality of surface waters, including actions to further the purposes of the Clean Water Legacy Act as provided in section 114D.10, subdivision 1; or

 

(5) expand the use of biofuels, including by expanding the feasibility or reducing the cost of producing biofuels or the types of equipment, machinery, and vehicles that can use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections 41A.10, subdivision 2, and 41A.11; or

 

(6) increase the use of green chemistry, as defined in section 116.9401.

 

For the purpose of clause (3), "green economy" includes strategies that reduce carbon emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass transit or otherwise reducing commuting for employees.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 2.  [116J.872] RESPONSE TEAM. 

 

(a) The department shall operate a fast-action economic response team to contact and work with businesses that are identified as being:

 

(1) at risk for relocating or expanding outside the state; or

 

(2) prospects for expansion or relocation within the state.

 

(b) The fast-action response team must contact identified businesses within 24 hours.


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Sec. 3.  Minnesota Statutes 2008, section 116J.8731, subdivision 1, is amended to read:

 

Subdivision 1.  Purpose.  The Minnesota investment fund is created to provide financial and technical assistance, through partnership with communities, for the creation of new employment or to maintain existing employment, and for business start-up, expansions, and retention.  It shall accomplish these goals by the following means:

 

(1) creation or retention of permanent private-sector jobs in order to create above-average economic growth consistent with environmental protection, which includes investments in technology and equipment that increase productivity and provide for a higher wage;

 

(2) stimulation or leverage of private investment to ensure economic renewal and competitiveness;

 

(3) increasing the local tax base, based on demonstrated measurable outcomes, to guarantee a diversified industry mix;

 

(4) improving the quality of existing jobs, based on increases in wages or improvements in the job duties, training, or education associated with those jobs;

 

(5) improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living, consistent with federal and state guidelines on low- to moderate-income persons; and

 

(6) stimulation of productivity growth through improved manufacturing or new technologies, including cold weather testing.

 

Sec. 4.  Minnesota Statutes 2009 Supplement, section 116J.8731, subdivision 3, is amended to read:

 

Subd. 3.  Eligible expenditures.  The money appropriated for this section may be used to fund:

 

(1) fund grants for infrastructure, loans, loan guarantees, interest buy-downs, and other forms of participation with private sources of financing, provided that a loan to a private enterprise must be for a principal amount not to exceed one-half of the cost of the project for which financing is sought; and

 

(2) fund strategic investments in renewable energy market development, such as low interest loans for renewable energy equipment manufacturing, training grants to support renewable energy workforce, development of a renewable energy supply chain that represents and strengthens the industry throughout the state, and external marketing to garner more national and international investment into Minnesota's renewable sector.  Expenditures in external marketing for renewable energy market development are not subject to the limitations in clause (1); and

 

(3) provide private entrepreneurs with training, other technical assistance, and financial assistance, as provided in the small cities development block grant program.

 

Sec. 5.  Minnesota Statutes 2008, section 116J.8731, subdivision 4, is amended to read:

 

Subd. 4.  Eligible projects.  Assistance must be evaluated on the existence of the following conditions:

 

(1) creation of new jobs, retention of existing jobs, or improvements in the quality of existing jobs as measured by the wages, skills, or education associated with those jobs;

 

(2) increase in the tax base;


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(3) the project can demonstrate that investment of public dollars induces private funds;

 

(4) the project can demonstrate an excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project;

 

(5) the project provides higher wage levels to the community or will add value to current workforce skills;

 

(6) the project supports the development of microenterprises, as defined by federal statutes, through financial assistance, technical assistance, advice, or business services;

 

(7) whether assistance is necessary to retain existing business;

 

(7) (8) whether assistance is necessary to attract out-of-state business; and

 

(8) (9) the project promotes or advances the green economy as defined in section 116J.437.

 

A grant or loan cannot be made based solely on a finding that the conditions in clause (6) (7) or (7) (8) exist.  A finding must be made that a condition in clause (1), (2), (3), (4), or (5), or (6) also exists.

 

Applications recommended for funding shall be submitted to the commissioner.

 

Sec. 6.  Minnesota Statutes 2008, section 116J.996, is amended to read:

 

116J.996 MILITARY RESERVIST ECONOMIC INJURY AND VETERAN-OWNED SMALL BUSINESS LOANS. 

 

Subdivision 1.  Definitions.  (a) The definitions in this subdivision apply to this section.

 

(b) "Active service" has the meaning given in section 190.05.

 

(c) "Commissioner" means the commissioner of employment and economic development.

 

(d) "Eligible business" means a small business, as defined in section 645.445, that was operating in Minnesota on the date a military reservist received orders for active service.

 

(e) "Essential employee" means a military reservist who is an owner or employee of an eligible business and whose managerial or technical expertise is critical to the day-to-day operation of the eligible business.

 

(f) "Military reservist" means a member of the reserve component of the armed forces.

 

(g) "Reserve component of the armed forces" has the meaning given it in United States Code, title 10, section 101(c).

 

(h) "Substantial economic injury" means an economic harm to an eligible business that results in the inability of the eligible business to:

 

(1) meet its obligations as they mature;

 

(2) pay its ordinary and necessary operating expenses; or


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(3) manufacture, produce, market, or provide a product or service ordinarily manufactured, produced, marketed, or provided by the eligible business.

 

(i) "Veteran-owned small business" means a small business, as defined in section 645.445, that is majority-owned and operated by a recently separated veteran.

 

Subd. 2.  Loan program.  The commissioner may make onetime, interest-free loans of up to $20,000 per borrower to:

 

(1) eligible businesses that have sustained or are likely to sustain substantial economic injury as a result of the call to active service for 180 days or more of an essential employee; or

 

(2) recently separated veterans who are veterans as defined in section 197.447, and have served in active military service, at any time on or after September 11, 2001, to start a veteran-owned small business. 

 

Loans for economic injury must be made for the purpose of preventing, remedying, or ameliorating the substantial economic injury.

 

Subd. 3.  Revolving loan account.  The commissioner shall use money appropriated for the purpose to establish a revolving loan account.  All repayments of loans made under this section must be deposited into this account.  Interest earned on money in the account accrues to the account.  Money in the account is appropriated to the commissioner for purposes of the loan program created in this section, including costs incurred by the commissioner to establish and administer the program.

 

Subd. 4.  Rules.  Using the expedited rulemaking procedures of section 14.389, the commissioner shall develop and publish expedited rules for loan applications, use of funds, needed collateral, terms of loans, and other details of military reservist economic injury and veteran-owned small business loans.

 

Sec. 7.  Minnesota Statutes 2008, section 116L.665, subdivision 3, is amended to read:

 

Subd. 3.  Purpose; duties.  The governor's Workforce Development Council shall replace the governor's Job Training Council and assume all of its requirements, duties, and responsibilities under the Workforce Investment Act.  Additionally, the Workforce Development Council shall assume the following duties and responsibilities:

 

(a) Review the provision of services and the use of funds and resources under applicable federal human resource programs and advise the governor on methods of coordinating the provision of services and the use of funds and resources consistent with the laws and regulations governing the programs.  For purposes of this section, applicable federal and state human resource programs mean the:

 

(1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.;

 

(2) Carl D. Perkins Vocational and Applied Technology Education Act, United States Code, title 20, section 2301, et seq.;

 

(3) Adult Education Act, United States Code, title 20, section 1201, et seq.;

 

(4) Wagner-Peyser Act, United States Code, title 29, section 49;

 

(5) Personal Responsibility and Work Opportunities Act of 1996 (TANF);


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(6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp Employment and Training Program, United States Code, title 7, section 2015(d)(4); and

 

(7) programs defined in section 116L.19, subdivision 5. 

 

Additional federal and state programs and resources can be included within the scope of the council's duties if recommended by the governor after consultation with the council.

 

(b) Review federal, state, and local education, postsecondary, job skills training, and youth employment programs, and make recommendations to the governor and the legislature for establishing an integrated seamless system for providing education and work skills development services to learners and workers of all ages.

 

(c) Advise the governor on the development and implementation of statewide and local performance standards and measures relating to applicable federal human resource programs and the coordination of performance standards and measures among programs.

 

(d) Promote education and employment transitions programs and knowledge and skills of entrepreneurship among employers, workers, youth, and educators, and encourage employers to provide meaningful work-based learning opportunities;

 

(e) Evaluate and identify exemplary education and employment transitions programs and provide technical assistance to local partnerships to replicate the programs throughout the state.

 

(f) Advise the governor on methods to evaluate applicable federal human resource programs.

 

(g) Sponsor appropriate studies to identify human investment needs in Minnesota and recommend to the governor goals and methods for meeting those needs.

 

(h) Recommend to the governor goals and methods for the development and coordination of a human resource system in Minnesota.

 

(i) Examine federal and state laws, rules, and regulations to assess whether they present barriers to achieving the development of a coordinated human resource system.

 

(j) Recommend to the governor and to the federal government changes in state or federal laws, rules, or regulations concerning employment and training programs that present barriers to achieving the development of a coordinated human resource system.

 

(k) Recommend to the governor and to the federal government waivers of laws and regulations to promote coordinated service delivery.

 

(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic plan which details methods for meeting Minnesota's human investment needs and for developing and coordinating a state human resource system.

 

(m) Provide the commissioner of employment and economic development and the committees of the legislature with responsibility for economic development with recommendations provided to the governor under this subdivision.

 

(n) In consultation with local workforce councils and the Department of Employment and Economic Development, develop an ongoing process to identify and address local gaps in workforce services.


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Sec. 8.  Minnesota Statutes 2008, section 116L.665, subdivision 6, is amended to read:

 

Subd. 6.  Staffing.  The Department of Employment and Economic Development must provide staff support, including but not limited to professional, technical, and clerical staff necessary to perform the duties assigned to the Minnesota Workforce Development Council.  The support includes professional, technical, and clerical staff necessary to perform the duties assigned to the Workforce Development Council.  All staff report to the commissioner.  The council may ask for assistance from other units of state government as it requires in order to fulfill its duties and responsibilities.

 

Sec. 9.  Minnesota Statutes 2008, section 116L.665, is amended by adding a subdivision to read:

 

Subd. 8.  Funding.  The commissioner shall develop recommendations on a funding formula for allocating Workforce Investment Act funds to the council with a minimum allocation of $350,000 per year.  The commissioner shall report the funding formula recommendations to the legislature by January 15, 2011.

 

Sec. 10.  [116L.98] WORKFORCE PROGRAM OUTCOMES. 

 

The commissioner shall develop and implement a set of standard approaches for assessing the outcomes of workforce programs under this chapter.  The outcomes assessed must include, but are not limited to, periodic comparisons of workforce program participants and nonparticipants. 

 

The commissioner shall also monitor the activities and outcomes of programs and services funded by legislative appropriations and administered by the department on a pass-through basis and develop a consistent and equitable method of assessing recipients for the costs of its monitoring activities.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 11.  [116W.01] MINNESOTA SCIENCE AND TECHNOLOGY AUTHORITY ACT. 

 

This chapter may be cited as the "Minnesota Science and Technology Authority Act."

 

Sec. 12.  [116W.02] DEFINITIONS. 

 

Subdivision 1.  Applicability.  For the purposes of this chapter, the terms in this section have the meanings given them.

 

Subd. 2.  Authority.  "Authority" means the Minnesota Science and Technology Authority.

 

Subd. 3.  Eligible recipient.  "Eligible recipient" means an entity primarily operating to create and retain jobs in the state's industrial base and maximize the economic growth of the state through:

 

(1) high-technology research and development capabilities;

 

(2) product and process innovation and commercialization;

 

(3) high-technology manufacturing capabilities;

 

(4) science and technology business environment; or

 

(5) science and technology workforce preparation.


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Subd. 4.  Advisory commission.  "Advisory commission" means the advisory commission under section 116W.051.

 

Sec. 13.  [116W.03] MINNESOTA SCIENCE AND TECHNOLOGY AUTHORITY. 

 

Subdivision 1.  Membership.  The Minnesota Science and Technology Authority consists of the commissioner of employment and economic development, the commissioner of management and budget, the commissioner of revenue, the commissioner of commerce, and the commissioner of agriculture.

 

Subd. 2.  Chair; other officers.  The commissioner of employment and economic development shall serve as the chair and chief executive officer of the authority.  The authority shall rotate the position of vice chair annually among its members.  The commissioner of employment and economic development shall convene the first meeting of the authority no later than July 1, 2010.  In the absence of the chair or vice chair at meetings of the authority members may elect a chair for the meeting, and may elect other officers as necessary from its members.

 

Subd. 3.  Delegation.  In addition to any powers to delegate that members of the authority have as commissioners, they may delegate to the chair, vice chair, or executive director their responsibilities as members of the authority for reviewing and approving financing of eligible projects, projects that have been authorized by law, or programs specifically authorized by resolution of the authority.

 

Subd. 4.  Actions.  (a) A majority of the authority, excluding vacancies, constitutes a quorum to conduct its business, to exercise its powers, and for all other purposes.

 

(b) The authority may conduct its business by any technological means available, including teleconference calls or interactive video, that allows for an interaction between members.  If a meeting is conducted under this paragraph, a specific location must be available for the public to attend the meeting and at least one member must be present at that location.

 

Subd. 5.  Executive director; staffing.  The authority shall employ an executive director in the unclassified service.  The initial executive director must be the individual in the position of director of the Office of Science and Technology as of January 1, 2010, under section 116J.657.  The executive director is responsible for hiring staff necessary to assist the executive director to carry out the duties and responsibilities of the authority.  The executive director shall perform duties that the authority may require in carrying out its responsibilities to manage and implement the funds and programs in this chapter, and comply with all state and federal program requirements, and state and federal securities and tax laws and regulations.  The executive director shall assist the advisory board in fulfilling its duties under this chapter.

 

Subd. 6.  Administrative services.  The authority shall enter into agreements for administrative and professional services and technical support.

 

Subd. 7.  Expiration.  This section expires June 30, 2018.  Section 15.059, subdivision 5, does not apply to the authority.

 

Sec. 14.  [116W.04] POWERS AND DUTIES. 

 

Subdivision 1.  Duties.  The Science and Technology Authority shall: 

 

(1) coordinate public and private efforts to procure federal funding for collaborative research and development projects of primary benefit to small-sized and medium-sized businesses;


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(2) promote contractual relationships between Minnesota businesses that are recipients of federal grants and prime contractors, and Minnesota-based subcontractors;

 

(3) work with Minnesota nonprofit institutions including the University of Minnesota, Minnesota State Colleges and Universities, and the Mayo Clinic in promoting collaborative efforts to respond to federal funding opportunities;

 

(4) develop a framework for Minnesota companies to establish sole-source relationships with federal agencies;

 

(5) provide grants or other forms of financial assistance to eligible recipients for purposes of this chapter;

 

(6) coordinate workshops, assistance with business proposals, licensing, intellectual property protection, commercialization, and government auditing with the University of Minnesota and Minnesota State Colleges and Universities; and

 

(7) develop and implement a comprehensive science and technology economic development strategy for the state.

 

Subd. 2.  Technology matchmaking.  The authority must assist businesses in identifying qualified suppliers and vendors through a program to serve as a conduit for Minnesota-based companies to network with firms able to support their success.  Firms outside Minnesota can participate in the technology matchmaking network if one of the participating companies is located in Minnesota.

 

Subd. 3.  Commercialization assistance.  The authority must provide commercialization assistance to Minnesota firms that have received a Phase I Small Business Innovation Research (SBIR) or a Phase I Small Business Technology Transfer (STTR) award and are submitting a Phase II proposal.  Local service providers must assist the applicant with developing and reviewing the required commercialization plan prior to Phase II submission.  The authority may provide SBIR Phase I proposal technical review.

 

Subd. 4.  Power to sue; enter contracts.  The authority may sue and be sued.  The authority may make and enter into contracts, leases, and agreements necessary to perform its duties and exercise its powers.

 

Subd. 5.  Gifts; grants.  The authority may apply for, accept, and disburse gifts, grants, loans, or other property from the United States, the state, private sources, or any other source for any of its purposes.  Money received by the authority under this subdivision must be deposited in the state treasury and is appropriated to the authority to carry out its duties.

 

Subd. 6.  Contract for services.  The authority may retain or contract for the services of accountants, financial advisors, and other consultants or agents needed to perform its duties and exercise its powers.

 

Subd. 7.  Fees.  The authority may set and collect fees for costs incurred by the authority, the Department of Employment and Economic Development, the Department of Management and Budget, the Department of Revenue, the Department of Commerce, the Department of Labor and Industry, and the Department of Agriculture, including costs for personnel, professional, and administrative services. 

 

Subd. 8.  Reports.  (a) The authority shall report by February 1 each year to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over finance and economic development on its progress to design, coordinate, and administer a strategic science and technology program for the state to promote the welfare of the people of the state, maximize the economic growth of the state, and create and retain jobs in the state's industrial base through enhancement of Minnesota's:

 

(1) high-technology research and development capabilities;


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(2) product and process innovation and commercialization;

 

(3) high-technology manufacturing capabilities;

 

(4) science and technology business environment; and

 

(5) science and technology workforce preparation.

 

(b) The report must include a complete operating and financial statement covering the authority's operations during the year, including amounts of income from all sources.  Books and records of the authority are subject to audit by the legislative auditor in the manner prescribed for state agencies.

 

Subd. 9.  Consultative and technical services.  The authority may provide general consultative and technical services to assist eligible projects and enter into agreements or other transactions concerning the receipt or provision of those services.

 

Subd. 10.  Financial information.  Financial information, including credit reports, financial statements, and net worth calculations, received or prepared by the authority regarding financial assistance, is private data with regard to data on individuals as defined in section 13.02, subdivision 12, and nonpublic data with regard to data not on individuals as defined in section 13.02, subdivision 9. 

 

Subd. 11.  General.  The authority shall have all powers necessary and appropriate to fulfill its responsibilities under this chapter. 

 

Sec. 15.  [116W.05] PROJECT FINANCIAL ASSISTANCE. 

 

Subdivision 1.  Determination of financial assistance.  The authority shall assist eligible recipients in identifying grants or other sources of financial assistance available to finance projects and may assist eligible recipients in applying for and obtaining grants and other forms of assistance.

 

Subd. 2.  Financial feasibility review.  (a) The authority shall review the proposed financing for each project submitted to the authority to determine whether:  (1) the proposed project and financing plan is an eligible use of the money; and (2) the proposal is in compliance with applicable state and federal tax and securities laws and regulations.  Grants in excess of $50,000 must be approved by the authority.  Grants of $50,000 or less may be authorized by the executive director.  All grant approvals or disapprovals must be completed within 30 days of submission to the authority.  Grants approved by the executive director must be reviewed by the authority each month.

 

(b) Unless a project is specifically authorized by law, the authority may reject the proposed financing for a project meeting the requirements in paragraph (a) if there are not sufficient funds available or if a majority of members believe the financing of the project would not be in the best interests of the state or would be detrimental to the authority's funds or programs.  A determination to reject a proposed project must not be made in an arbitrary and capricious manner and must be supported by substantive evidence and documented by a resolution of the authority stating its findings.

 

Sec. 16.  [116W.051] ADVISORY COMMISSION. 

 

Subdivision 1.  Advisory commission membership.  A Science and Technology Initiative Advisory Commission of 18 members is established and is comprised of:

 

(1) two representatives of the University of Minnesota, selected by the president of the university, including a faculty member actively involved in science and technology research;


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(2) two representatives of the Minnesota State Colleges and Universities, selected by the chancellor, including a faculty member actively involved in science and technology research;

 

(3) the chief executive officer of Mayo Clinic or a designee;

 

(4) six chief executive officers or designees from science-oriented or technology-oriented companies;

 

(5) four representatives from science-oriented and technology-oriented organizations;

 

(6) one representative of organized labor;

 

(7) a venture capital representative; and

 

(8) a representative of angel investors.

 

A member must have experience in science or technology in order to serve on the commission.

 

Members of the commission listed in clauses (4) to (8) shall be appointed by the authority.

 

Subd. 2.  Advisory commission duties.  The advisory commission must assist the authority in developing a comprehensive science and technology economic development plan to be presented to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over economic development and higher education by January 15, 2011.  The plan must include recommendations in strategic areas for science and technology investments, recommendations on additional programs to support science and technology focused economic development activities in the state, selection of specific programs and grantees for support from program funds authorized by the advisory commission and ongoing assessment of the effectiveness of programmatic elements according to metrics to be developed by the authority in consultation with the advisory commission.  The advisory commission may also advise and assist the authority in fulfilling its duties under section 116W.04.

 

Subd. 3.  Membership terms; vacancies; compensation.  The membership terms, removal of members, and filling of vacancies are as provided under section 15.059.  The executive director may provide compensation to members if funds are available.

 

Subd. 4.  Expiration.  The advisory commission expires June 30, 2013.

 

Subd. 5.  Convening of meetings; staffing.  The executive director of the authority must convene the first meeting of the commission by August 1, 2010.  The executive director must provide administrative support and staff to the commission.

 

Sec. 17.  [116W.20] MONEY OF THE AUTHORITY. 

 

Subdivision 1.  Functions of commissioner of management and budget.  Except as otherwise provided in this section, money of the authority must be paid to the commissioner of management and budget as agent of the authority and the commissioner shall not commingle the money with other money.  The money in the accounts of the authority must be paid out only on warrants drawn by the commissioner of management and budget on requisition of the executive director of the authority or of another officer or employee as the authority authorizes.  Deposits of the authority's money must, if required by the commissioner or the authority, be secured by obligations of the United States or of the state of a market value equal at all times to the amount of the deposit and all banks and trust companies are authorized to give security for the deposits.  All money paid to the commissioner as agent of the authority is appropriated to the authority.  The commissioner must annually report to the committees of the legislature with responsibility for economic development and management and budget on the use of appropriations under this section.


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Subd. 2.  System of accounts.  The commissioner of management and budget shall prescribe a system of accounts.

 

Sec. 18.  [116W.21] NONLIABILITY. 

 

Subdivision 1.  Nonliability of individuals.  No member of the authority, staff of the authority, or other person executing other agreements or contracts of the authority is liable personally or is subject to any personal liability or accountability by reason of their issuance, execution, delivery, or performance.

 

Subd. 2.  Nonliability of state.  The state is not liable on loans or other agreements or contracts of the authority issued or entered into under this chapter and the loans or other agreements or contracts of the authority are not a debt of the state.  The loans or other agreements or contracts of the authority must contain on their face a statement to that effect.

 

Sec. 19.  [116W.23] STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS. 

 

The state pledges and agrees with parties to any loans or other agreements or contracts of the authority that the state will not:  (1) limit or alter the rights vested in the authority to fulfill the terms of any agreements made with the parties to any loans or other agreements or contracts of the authority; or (2) in any way impair the rights and remedies of the parties to any loans or other agreements or contracts of the authority.  The authority may include this pledge and agreement of the state in any agreement with the parties in any loans or other agreements or contracts of the authority. 

 

Sec. 20.  [116W.24] RESERVES; FUNDS; ACCOUNTS. 

 

The authority may establish reserves, funds, or accounts necessary to carry out the purposes of the authority or to comply with any agreement made by or any resolution passed by the authority.

 

Sec. 21.  Minnesota Statutes 2008, section 136F.06, is amended by adding a subdivision to read:

 

Subd. 4.  Workforce focus.  The board must identify colleges offering flexible academic programs that accommodate the needs of laid-off workers and assist its other institutions in determining whether to offer similar programs.  Colleges must increase the number of certificate programs available to meet the needs of unemployed Minnesotans.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 22.  Minnesota Statutes 2008, section 363A.42, as added by Laws 2010, chapter 271, section 2, is amended to read:

 

363A.42 PUBLIC RECORDS; ACCESSIBILITY. 

 

Subdivision 1.  Definitions.  For purposes of this section, "records" means any publicly available recorded information that is collected, created, received, maintained or disseminated by the executive, judicial or legislative branches of the state, the Minnesota State Colleges and Universities, the University of Minnesota, cities, towns, counties, school districts and all other political subdivisions of the state, regardless of physical form or method of storage.

 

Subd. 2.  Accessibility.  All Upon request by an individual, records must be made available within a reasonable time period to persons with disabilities in a manner consistent with state and federal laws prohibiting discrimination against persons with disabilities.  Reasonable modifications must be made in any policies, practices and procedures that might otherwise deny equal access to records to individuals with disabilities.


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Subd. 2a.  Exemptions.  Notwithstanding any law to the contrary except Laws 2009, chapter 131, this section does not apply to:  (1) technology procured or developed prior to January 1, 2013, unless substantially modified or substantially enhanced after January 1, 2013; or (2) records that cannot be reasonably modified to be accessible without an undue burden as defined in section 16E.015, subdivision 4, to the public entity.

 

Subd. 3.  Penalties.  Violation of this section is subject to a penalty of $500 per violation, plus reasonable attorney fees, costs and disbursements, payable to a qualified disabled person under section 363A.03, subdivision 36, who sought the accessible record under subdivision 2, by the public entity in violation of this section.  The total amount of penalties payable to any individual or class regardless of the number of violations is limited to $15,000.  In any class action or series of class actions which arise from a violation of this section, the amount of attorney fees awarded against the violating public entity may not exceed $15,000.  Any action must be commenced within one year of the occurrence of the alleged violation.

 

Sec. 23.  Minnesota Statutes 2008, section 363A.43, as added by Laws 2010, chapter 271, section 3, is amended to read:

 

363A.43 CONTINUING EDUCATION; ACCESSIBILITY. 

 

Subdivision 1.  Accessibility.  Any Upon request by an individual, any continuing education or professional development course, offering, material or activity approved or administered by the state, political subdivisions of the state, the University of Minnesota or the Minnesota State Colleges and Universities, must be made available within a reasonable time period to persons with disabilities in a manner consistent with state and federal laws prohibiting discrimination against persons with disabilities.  Reasonable modifications must be made in any policies, practices and procedures that might otherwise deny equal access to continuing education or professional development to individuals with disabilities. 

 

Subd. 2.  Penalties.  Violation of this section is subject to a penalty of $500 per violation, plus reasonable attorney fees, costs and disbursements, payable to a qualified disabled person under section 363A.03, subdivision 36, who sought the accessible format under subdivision 1, by the public entity or the entity offering the course, material, or activity under a contract with a public entity.  The total amount of penalties payable to any individual or class regardless of the number of violations is limited to $15,000.  In any class action or series of class actions which arise from a violation of this section, the amount of attorney fees awarded against the violating public entity may not exceed $15,000.  Any action must be commenced within one year of the occurrence of the alleged violation.

 

Sec. 24.  Minnesota Statutes 2008, section 462.355, subdivision 3, is amended to read:

 

Subd. 3.  Adoption by governing body.  A proposed comprehensive plan or an amendment to it may not be acted upon by the governing body until it has received the recommendation of the planning agency or until 60 days have elapsed from the date an amendment proposed by the governing body has been submitted to the planning agency for its recommendation.  Unless otherwise provided by charter, the governing body may by resolution by a two-thirds vote of all of its members adopt and amend the comprehensive plan or portion thereof as the official municipal plan upon such notice and hearing as may be prescribed by ordinance.  Except for amendments to permit affordable housing development, a resolution to amend or adopt a comprehensive plan must be approved by a two-thirds vote of all of the members.  Amendments to permit an affordable housing development are approved by a simple majority of all of the members.  For purposes of this subdivision, "affordable housing development" means a development in which at least 20 percent of the residential units are restricted to occupancy for at least ten years by residents whose household income at the time of initial occupancy does not exceed 60 percent of area median income, adjusted for household size, as determined by the United States Department of Housing and Urban Development, and with respect to rental units, the rents for affordable units do not exceed 30 percent of 60 percent of area median income, adjusted for household size, as determined annually by the United States Department of Housing and Urban Development.


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Sec. 25.  Minnesota Statutes 2008, section 469.1082, subdivision 5, is amended to read:

 

Subd. 5.  Area of operation.  The area of operation of a county economic development service provider created under this section shall include all cities and townships within a county that have adopted resolutions electing to participate.  A city or township may adopt a resolution electing to withdraw participation.  The withdrawal election may be made every fifth year following adoption of the resolution electing participation.  The withdrawal election is effective on the anniversary date of the original resolution provided notice is given to the county economic development authority not less than 90 nor more than 180 days prior to that anniversary date.  The city or township electing to withdraw retains any rights, obligations, and liabilities it obtained or incurred during its participation.  Any city or township within the county shall have the option to adopt a resolution to prohibit the county economic development service provider created under this section from operating within its boundaries and (1) within an agreed upon urban service area, or (2) within the distance approved in the committee report referenced in subdivision 3.  If a city or township prohibits a county economic development service provider created under this section from operating within its boundaries, the city's or township's property taxpayers shall not be subject to the property tax levied for the county economic development service provider.

 

Sec. 26.  Minnesota Statutes 2008, section 471.59, subdivision 10, is amended to read:

 

Subd. 10.  Services performed by governmental units; commonality of powers.  Notwithstanding the provisions of subdivision 1 requiring commonality of powers between parties to any agreement, the governing body of any governmental unit as defined in subdivision 1 may enter into agreements with any other governmental unit to perform on behalf of that unit any service or function which the governmental unit providing the service or function is authorized to provide for itself.  If the agreement has the effect of eliminating or replacing a public employee who is part of a collective bargaining agreement represented by an exclusive representative, and there is no provision in the collective bargaining agreement detailing the effect of the action on the affected public employee, negotiations on the effects to the employee of the job elimination or restructuring must be conducted between the exclusive representative and the employer.

 

Sec. 27.  Laws 2009, chapter 78, article 1, section 3, subdivision 2, is amended to read:

 

      Subd. 2.  Business and Community Development                                                      8,980,000                      8,980,000

 

                                        Appropriations by Fund

 

General                                7,941,000                              7,941,000

 

Remediation                          700,000                                 700,000

 

Workforce Development    339,000                                 339,000

 

(a) $700,000 the first year and $700,000 the second year are from the remediation fund for contaminated site cleanup and development grants under Minnesota Statutes, section 116J.554.  This appropriation is available until expended.

 

(b) $200,000 each year is from the general fund for a grant to WomenVenture for women's business development programs and for programs that encourage and assist women to enter nontraditional careers in the trades; manual and technical occupations; science, technology, engineering, and mathematics-related occupations; and green jobs.  This appropriation may be


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matched dollar for dollar with any resources available from the federal government for these purposes with priority given to initiatives that have a goal of increasing by at least ten percent the number of women in occupations where women currently comprise less than 25 percent of the workforce.  The appropriation is available until expended.

 

(c) $105,000 each year is from the general fund and $50,000 each year is from the workforce development fund for a grant to the Metropolitan Economic Development Association for continuing minority business development programs in the metropolitan area.  This appropriation must be used for the sole purpose of providing free or reduced fee business consulting services to minority entrepreneurs and contractors.

 

(d)(1) $500,000 each year is from the general fund for a grant to BioBusiness Alliance of Minnesota for bioscience business development programs to promote and position the state as a global leader in bioscience business activities.  This appropriation is added to the department's base.  These funds may be used to create, recruit, retain, and expand biobusiness activity in Minnesota; implement the destination 2025 statewide plan; update a statewide assessment of the bioscience industry and the competitive position of Minnesota-based bioscience businesses relative to other states and other nations; and develop and implement business and scenario-planning models to create, recruit, retain, and expand biobusiness activity in Minnesota.

 

(2) The BioBusiness Alliance must report each year by February 15 to the committees of the house of representatives and the senate having jurisdiction over bioscience industry activity in Minnesota on the use of funds; the number of bioscience businesses and jobs created, recruited, retained, or expanded in the state since the last reporting period; the competitive position of the biobusiness industry; and utilization rates and results of the business and scenario-planning models and outcomes resulting from utilization of the business and scenario-planning models.

 

(e)(1) Of the money available in the Minnesota Investment Fund, Minnesota Statutes, section 116J.8731, to the commissioner of the Department of Employment and Economic Development, up to $3,000,000 is appropriated in fiscal year 2010 for a loan to an aircraft manufacturing and assembly company, associated with the aerospace industry, for equipment utilized to establish an aircraft completion center at the Minneapolis-St. Paul International Airport.  The finishing center must use the state's vocational training programs designed specifically for aircraft maintenance training, and to the extent possible, work to recruit employees from these programs.  The center must create at least 200 new manufacturing jobs within 24 months of receiving the loan, and create not less than 500 new manufacturing jobs over a five-year period in Minnesota.


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(2) This loan is not subject to loan limitations under Minnesota Statutes, section 116J.8731, subdivision 5.  Any match requirements under Minnesota Statutes, section 116J.8731, subdivision 3, may be made from current resources.  This is a onetime appropriation and is effective the day following final enactment.

 

(f) $65,000 each year is from the general fund for a grant to the Minnesota Inventors Congress, of which at least $6,500 must be used for youth inventors.

 

(g) $200,000 the first year and $200,000 the second year are for the Office of Science and Technology.  This is a onetime appropriation.

 

(h) $500,000 the first year and $500,000 the second year are for a grant to Enterprise Minnesota, Inc., for the small business growth acceleration program under Minnesota Statutes, section 116O.115.  This is a onetime appropriation and is available until expended.

 

(i)(1) $100,000 each year is from the workforce development fund for a grant under Minnesota Statutes, section 116J.421, to the Rural Policy and Development Center at St. Peter, Minnesota.  The grant shall be used for research and policy analysis on emerging economic and social issues in rural Minnesota, to serve as a policy resource center for rural Minnesota communities, to encourage collaboration across higher education institutions, to provide interdisciplinary team approaches to research and problem-solving in rural communities, and to administer overall operations of the center.

 

(2) The grant shall be provided upon the condition that each state-appropriated dollar be matched with a nonstate dollar.  Acceptable matching funds are nonstate contributions that the center has received and have not been used to match previous state grants.  Any funds not spent the first year are available the second year.

 

(j) Notwithstanding Minnesota Statutes, section 268.18, subdivision 2, $414,000 of funds collected for unemployment insurance administration under this subdivision is appropriated as follows:  $250,000 to Lake County for ice storm damage; $64,000 is for the city of Green Isle for reimbursement of fire relief efforts and other expenses incurred as a result of the fire in the city of Green Isle; and $100,000 is to develop the construction mitigation pilot program to make grants for up to five projects statewide available to local government units to mitigate the impacts of transportation construction on local small business.  These are onetime appropriations and are available until expended.

 

(k) Up to $10,000,000 is appropriated from the Minnesota minerals 21st century fund to the commissioner of Iron Range resources and rehabilitation to make a grant or forgivable loan to a manufacturer


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of windmill blades at a facility to be located within the taconite tax relief area defined in Minnesota Statutes, section 273.134.  Of this amount, $2,000,000 is for a grant to the Mountain Iron Economic Development Authority for renewable energy projects.

 

(l) $1,000,000 is appropriated from the Minnesota minerals 21st century fund to the Board of Trustees of the Minnesota State Colleges and Universities for a grant to the Northeast Higher Education District for planning, design, and construction of classrooms and housing facilities for upper division students in the engineering program.

 

(m)(1) $189,000 each year is appropriated from the workforce development fund for grants of $63,000 to eligible organizations each year to assist in the development of entrepreneurs and small businesses.  Each state grant dollar must be matched with $1 of nonstate funds.  Any balance in the first year does not cancel but is available in the second year.

 

(2) Three grants must be awarded to continue or to develop a program.  One grant must be awarded to the Riverbend Center for Entrepreneurial Facilitation in Blue Earth County, and two to other organizations serving Faribault and Martin Counties.  Grant recipients must report to the commissioner by February 1 of each year that the organization receives a grant with the number of customers served; the number of businesses started, stabilized, or expanded; the number of jobs created and retained; and business success rates.  The commissioner must report to the house of representatives and senate committees with jurisdiction over economic development finance on the effectiveness of these programs for assisting in the development of entrepreneurs and small businesses.

 

Sec. 28.  REPORT ON AT-RISK BUSINESSES; CREATION OF FAST-ACTION ECONOMIC RESPONSE TEAM. 

 

Not later than 30 days after the effective date of this section, the commissioner of employment and economic development shall submit to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over jobs and employment and economic development a report that identifies retention methods the department currently uses, and retention methods the department could use in the future, to identify businesses at risk for relocation or expansion outside of this state.  The report must also include a proactive plan to identify businesses outside of this state that are seeking to relocate or expand, or that could be encouraged to relocate or expand through the use of incentives.  In developing the plan, the commissioner shall collaborate with economic development stakeholders from state government, business, and nongovernmental organizations.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 29.  CUSTOMER SERVICE. 

 

(a) The commissioner of employment and economic development, in consultation with workforce service area staff, must, as soon as practical, develop and implement processes and procedures to ensure that unemployed Minnesotans who go to a workforce center are provided, to the fullest extent possible, seamless assistance in applying for unemployment benefits, accessing resource room resources, searching for jobs, accessing training and other services available to unemployed workers, and receiving answers to questions about unemployment insurance.


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(b) The actions taken to comply with paragraph (a) must include, at a minimum, the implementation of a procedure by which unemployed Minnesotans may receive, at their option, face-to-face consultation and assistance in their local workforce center on applying for unemployment benefits, accessing resource room resources, searching for jobs, accessing training and other services available to unemployed workers, and receiving answers to questions about unemployment insurance.

 

(c) The commissioner is authorized and encouraged to maximize the use of existing employees and federal dollars to accomplish paragraph (a), including, but not limited to, paying portions of existing employees' salaries from more than one source of funding, ensuring that employees are cross-trained to perform functions beyond that required by paragraph (b) when such employees are stationed in workforce centers, and implementing need-based scheduling of employees to ensure that each workforce center is adequately staffed during peak demand hours for the services contemplated by paragraph (a).

 

(d) By September 1, 2010, the commissioner must provide an initial written report to the chairs and ranking minority members of the standing committees of the senate and house of representatives having jurisdiction over economic and workforce development issues on the actions taken under paragraph (a) and the result of those actions.  The report must include detailed information on new additional resources provided by the department to ensure that the issues in paragraph (a) are addressed.  A second report with updated information must be provided to the chairs and ranking minority members of the standing committees of the senate and house of representatives having jurisdiction over economic and workforce development issues by January 15, 2011.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and expires August 31, 2011.

 

Sec. 30.  WORKFORCE SERVICES REPORT AND RECOMMENDATIONS. 

 

By January 15, 2011, the governor's Workforce Development Council executive committee shall submit a report to the senate and house of representatives committees with jurisdiction over workforce development programs on the performance and outcomes of the workforce centers, as required by Minnesota Statutes, section 116L.665, subdivision 4.  This report must contain recommendations for an ongoing process to identify local gaps in workforce services and ways to fill the gaps.  The Department of Employment and Economic Development and the workforce councils should be included in the process for identifying service gaps.  The governor's Workforce Development Council executive committee must submit draft-guiding principles to the legislature for review and feedback by August 12, 2010.

 

Sec. 31.  DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT BLOCK GRANT REPORT. 

 

The commissioner of employment and economic development shall study and report to the chairs and ranking minority members of the house of representatives and senate committees having jurisdiction over economic development and workforce issues on the use of block grant funding to be administered by the Workforce Development Division and the Business and Community Development Division.  The report must include recommendations for the use of block grant funding including goals, grant award criteria, RFP procedures, priorities for target populations and the services to be provided, and inclusion of all pass-through grants administered by the department including those receiving direct state appropriations.  The recommendations must contain specific proposals on providing grant oversight, evaluation, and administration of allocated funds in order to maximize services to target populations.

 

Sec. 32.  STUDY OF DIVISION OF STATE DEPOSITORY ACCOUNTS AND GENERAL FUND REVENUE ACCOUNT. 

 

(a) The Carlson School of Management at the University of Minnesota is requested to study: 


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(1) the feasibility of dividing the state's general fund revenue account among community financial institutions and transferring the state's major and minor accounts to community financial institutions in order to ensure that state money benefits Minnesota residents;

 

(2) the potential economic benefit and cost of transferring all major and minor accounts to community financial institutions; and

 

(3) the potential economic benefit and cost to governmental entities as defined by Minnesota Statutes, section 118A.01, subdivision 2, from an increase in their use of community financial institutions as defined in clause (1).

 

(b) The results of the study must be reported to the legislature by December 1, 2010.

 

For purposes of this section, "community financial institution" means a federally insured bank or credit union, chartered as a bank or credit union by the state of Minnesota or the United States, that is headquartered in Minnesota and has no more than $2,500,000,000 in assets.

 

Sec. 33.  COMPARATIVE STUDY OF STATE REGULATION AFFECTING SMALL BUSINESS START-UPS. 

 

(a) $65,000 is appropriated for fiscal year 2011 from the general fund to the Legislative Coordinating Commission to fund a comparative study of the effects of state regulation on the cost and delay associated with starting a typical small business in Minnesota, Iowa, North Dakota, South Dakota, and Wisconsin.  The Legislative Coordinating Commission must also apply for a grant to fund the study.  This is a onetime appropriation.

 

(b) The study, to be conducted by a higher education institution, must examine the typical cost and delay required by state regulation in the five states to start a typical small services business, small retail business, and small manufacturing business.  Within each of those three categories, the study must choose to study similar types of businesses and follow the start-up process in the five states from beginning to end, including formation, financing, licensing, permits, reporting requirements, employment laws, and state and local taxes.  The study must result in a written report submitted to the Legislative Coordinating Commission no later than December 1, 2011.

 

(c) The Legislative Coordinating Commission shall request proposals and choose the recipient of the grant from among higher education institutions that have a graduate program in business, business administration, or a similar field.  The Legislative Coordinating Commission shall periodically monitor the recipient's progress on the study and written report.  The Legislative Coordinating Commission shall submit the written report as a report to the legislature in compliance with Minnesota Statutes, sections 3.195 and 3.197.

 

(d) If the funds appropriated in this section are unexpended, the remaining balance must be transferred to the Science and Technology Authority.

 

Sec. 34.  APPROPRIATION. 

 

(a) $107,000 is appropriated from the general fund in fiscal year 2011 to the Minnesota Science and Technology Authority for the purposes of Minnesota Statutes, chapter 116W.

 

(b) The general fund appropriation in Laws 2009, chapter 78, article 1, section 3, subdivision 2, is reduced by $107,000 beginning in fiscal year 2011.

 

(c) Of the appropriation to the commissioner of employment and economic development under section 115C.08, subdivision 4, paragraph (c), in fiscal year 2011 only, $300,000 is for a grant to the Minneapolis Park and Recreation Board for cleanup of contaminated soils related to construction of the East Phillips Cultural and Community Center.  This is a onetime appropriation and is available until expended.


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Sec. 35.  TRANSFER. 

 

The commissioner of management and budget must transfer any remaining balance of the appropriation made in Laws 2009, chapter 78, article 1, section 3, subdivision 2, paragraph (g), to the Minnesota Science and Technology Authority.

 

Sec. 36.  REPEALER. 

 

Minnesota Statutes 2008, section 116J.657, is repealed.

 

ARTICLE 2

 

UNEMPLOYMENT INSURANCE

 

Section 1.  Minnesota Statutes 2009 Supplement, section 268.035, subdivision 19a, is amended to read:

 

Subd. 19a.  Immediate family member.  "Immediate family member" means the applicant's an individual's spouse, parent, stepparent, son or daughter, stepson or stepdaughter, or grandson or granddaughter.

 

Sec. 2.  Minnesota Statutes 2008, section 268.035, subdivision 20, is amended to read:

 

Subd. 20.  Noncovered employment.  "Noncovered employment" means:

 

(1) employment for the United States government or an instrumentality thereof, including military service;

 

(2) employment for a state, other than Minnesota, or a political subdivision or instrumentality thereof;

 

(3) employment for a foreign government;

 

(4) employment for an instrumentality wholly owned by a foreign government, if the employment is of a character similar to that performed in foreign countries by employees of the United States government or an instrumentality thereof and the United States Secretary of State has certified that the foreign government grants an equivalent exemption to similar employment performed in the foreign country by employees of the United States government and instrumentalities thereof;

 

(5) employment covered under United States Code, title 45, section 351, the Railroad Unemployment Insurance Act;

 

(6) employment covered by a reciprocal arrangement between the commissioner and another state or the federal government that provides that all employment performed by an individual for an employer during the period covered by the reciprocal arrangement is considered performed entirely within another state;

 

(7) employment for a church or convention or association of churches, or an organization operated primarily for religious purposes that is operated, supervised, controlled, or principally supported by a church or convention or association of churches described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a);

 

(8) employment of a duly ordained or licensed minister of a church in the exercise of a ministry or by a member of a religious order in the exercise of duties required by the order, for Minnesota or a political subdivision or an organization described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a);


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(9) employment of an individual receiving rehabilitation of "sheltered" work in a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury or a program providing "sheltered" work for individuals who because of an impaired physical or mental capacity cannot be readily absorbed in the competitive labor market.  This clause applies only to services performed for Minnesota or a political subdivision or an organization described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a) in a facility certified by the Rehabilitation Services Branch of the department or in a day training or habilitation program licensed by the Department of Human Services;

 

(10) employment of an individual receiving work relief or work training as part of an unemployment work relief or work training program assisted or financed in whole or in part by any federal agency or an agency of a state or political subdivision thereof.  This clause applies only to employment for Minnesota or a political subdivision or an organization described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a).  This clause does not apply to programs that require unemployment benefit coverage for the participants;

 

(11) employment for Minnesota or a political subdivision as an elected official, a member of a legislative body, or a member of the judiciary;

 

(12) employment as a member of the Minnesota National Guard or Air National Guard;

 

(13) employment for Minnesota, a political subdivision, or instrumentality thereof, as an employee serving only on a temporary basis in case of fire, flood, tornado, or similar emergency;

 

(14) employment as an election official or election worker for Minnesota or a political subdivision, but only if the compensation for that employment was less than $1,000 in a calendar year;

 

(15) employment for Minnesota that is a major policy-making or advisory position in the unclassified service, including those positions established under section 43A.08, subdivision 1a;

 

(16) employment for a political subdivision of Minnesota that is a nontenured major policy making or advisory position;

 

(17) domestic employment in a private household, local college club, or local chapter of a college fraternity or sorority performed for a person, only if the wages paid in any calendar quarter in either the current or prior calendar year to all individuals in domestic employment totaled less than $1,000.

 

"Domestic employment" includes all service in the operation and maintenance of a private household, for a local college club, or local chapter of a college fraternity or sorority as distinguished from service as an employee in the pursuit of an employer's trade or business;

 

(18) employment of an individual by a son, daughter, or spouse, and employment of a child under the age of 18 by the child's father or mother;

 

(19) employment for a personal care assistance provider agency by an immediate family member of a recipient who provides the direct care to the recipient through the personal care assistance program under section 256B.0659;

 

(20) employment of an inmate of a custodial or penal institution;

 

(20) (21) employment for a school, college, or university by a student who is enrolled and is regularly attending classes at the school, college, or university;


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(21) (22) employment of an individual who is enrolled as a student in a full-time program at a nonprofit or public educational institution that maintains a regular faculty and curriculum and has a regularly organized body of students in attendance at the place where its educational activities are carried on, taken for credit at the institution, that combines academic instruction with work experience, if the employment is an integral part of the program, and the institution has so certified to the employer, except that this clause does not apply to employment in a program established for or on behalf of an employer or group of employers;

 

(22) (23) employment of university, college, or professional school students in an internship or other training program with the city of St. Paul or the city of Minneapolis under Laws 1990, chapter 570, article 6, section 3;

 

(23) (24) employment for a hospital by a patient of the hospital.  "Hospital" means an institution that has been licensed by the Department of Health as a hospital;

 

(24) (25) employment as a student nurse for a hospital or a nurses' training school by an individual who is enrolled and is regularly attending classes in an accredited nurses' training school;

 

(25) (26) employment as an intern for a hospital by an individual who has completed a four-year course in an accredited medical school;

 

(26) (27) employment as an insurance salesperson, by other than a corporate officer, if all the wages from the employment is solely by way of commission.  The word "insurance" includes an annuity and an optional annuity;

 

(27) (28) employment as an officer of a township mutual insurance company or farmer's mutual insurance company operating under chapter 67A;

 

(28) (29) employment of a corporate officer, if the officer owns 25 percent or more of the employer corporation, and employment of a member of a limited liability company, if the member owns 25 percent or more of the employer limited liability company;

 

(29) (30) employment as a real estate salesperson, by other than a corporate officer, if all the wages from the employment is solely by way of commission;

 

(30) (31) employment as a direct seller as defined in United States Code, title 26, section 3508;

 

(31) (32) employment of an individual under the age of 18 in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution;

 

(32) (33) casual employment performed for an individual, other than domestic employment under clause (17), that does not promote or advance that employer's trade or business;

 

(33) (34) employment in "agricultural employment" unless considered "covered agricultural employment" under subdivision 11; or

 

(34) (35) if employment during one-half or more of any pay period was covered employment, all the employment for the pay period is considered covered employment; but if during more than one-half of any pay period the employment was noncovered employment, then all of the employment for the pay period is considered noncovered employment.  "Pay period" means a period of not more than a calendar month for which a payment or compensation is ordinarily made to the employee by the employer.

 

Sec. 3.  Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision to read:

 

Subd. 21d.  Staffing service.  A "staffing service" is an employer whose business involves employing individuals directly for the purpose of furnishing temporary assignment workers to clients of the staffing service.


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Sec. 4.  Minnesota Statutes 2009 Supplement, section 268.035, subdivision 23a, is amended to read:

 

Subd. 23a.  Suitable employment.  (a) Suitable employment means employment in the applicant's labor market area that is reasonably related to the applicant's qualifications.  In determining whether any employment is suitable for an applicant, the degree of risk involved to the health and safety, physical fitness, prior training, experience, length of unemployment, prospects for securing employment in the applicant's customary occupation, and the distance of the employment from the applicant's residence is considered.

 

(b) In determining what is suitable employment, primary consideration is given to the temporary or permanent nature of the applicant's separation from employment and whether the applicant has favorable prospects of finding employment in the applicant's usual or customary occupation at the applicant's past wage level within a reasonable period of time.

 

If prospects are unfavorable, employment at lower skill or wage levels is suitable if the applicant is reasonably suited for the employment considering the applicant's education, training, work experience, and current physical and mental ability.

 

The total compensation must be considered, including the wage rate, hours of employment, method of payment, overtime practices, bonuses, incentive payments, and fringe benefits.

 

(c) When potential employment is at a rate of pay lower than the applicant's former rate, consideration must be given to the length of the applicant's unemployment and the proportion of difference in the rates.  Employment that may not be suitable because of lower wages during the early weeks of the applicant's unemployment may become suitable as the duration of unemployment lengthens.

 

(d) For an applicant seasonally unemployed, suitable employment includes temporary work in a lower skilled occupation that pays average gross weekly wages equal to or more than 150 percent of the applicant's weekly unemployment benefit amount.

 

(e) If a majority of the applicant's weeks of employment in the base period includes part-time employment, part-time employment in a position with comparable skills and comparable hours that pays comparable wages is considered suitable employment.

 

Full-time employment is not considered suitable employment for an applicant if a majority of the applicant's weeks of employment in the base period includes part-time employment.

 

(f) To determine suitability of employment in terms of shifts, the arrangement of hours in addition to the total number of hours is to be considered.  Employment on a second, third, rotating, or split shift is suitable employment if it is customary in the occupation in the labor market area.

 

(g) Employment is not considered suitable if:

 

(1) the position offered is vacant because of a labor dispute;

 

(2) the wages, hours, or other conditions of employment are substantially less favorable than those prevailing for similar employment in the labor market area; or

 

(3) as a condition of becoming employed, the applicant would be required to join a company union or to resign from or refrain from joining any bona fide labor organization; or


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(4) the employment is with a staffing service and less than 45 percent of the applicant's wage credits are from a job assignment with the client of a staffing service. 

 

(h) A job assignment with a staffing service is considered suitable only if 45 percent or more of the applicant's wage credits are from job assignments with clients of a staffing service and the job assignment meets the definition of suitable employment under paragraph (a).

 

Sec. 5.  Minnesota Statutes 2008, section 268.046, subdivision 1, is amended to read:

 

Subdivision 1.  Tax accounts assigned.  (a) Any person that contracts with a taxpaying employer to have that person obtain the taxpaying employer's workforce and provide workers to the taxpaying employer for a fee is, as of the effective date of the contract, assigned for the duration of the contract the taxpaying employer's account under section 268.045.  That tax account must be maintained by the person separate and distinct from every other tax account held by the person and identified in a manner prescribed by the commissioner.  The tax account is, for the duration of the contract, considered that person's account for all purposes of this chapter.  The workers obtained from the taxpaying employer and any other workers provided by that person to the taxpaying employer, including officers of the taxpaying employer as defined in section 268.035, subdivision 20, clause (28), whose wages paid by the person are considered paid in covered employment under section 268.035, subdivision 24, for the duration of the contract between the taxpaying employer and the person, must, under section 268.044, be reported on the wage detail report under that tax account, and that person must pay any taxes due at the tax rate computed for that account under section 268.051, subdivision 2.

 

(b) Any workers of the taxpaying employer who are not covered by the contract under paragraph (a) must be reported by the taxpaying employer as a separate unit on the wage detail report under the tax account assigned under paragraph (a).  Taxes and any other amounts due on the wages reported by the taxpaying employer under this paragraph may be paid directly by the taxpaying employer.

 

(c) If the taxpaying employer that contracts with a person under paragraph (a) does not have a tax account at the time of the execution of the contract, an account must be registered for the taxpaying employer under section 268.042 and the new employer tax rate under section 268.051, subdivision 5, must be assigned.  The tax account is then assigned to the person as provided for in paragraph (a).

 

(d) A person that contracts with a taxpaying employer under paragraph (a) must, within 30 calendar days of the execution or termination of a contract, notify the commissioner by electronic transmission, in a format prescribed by the commissioner, of that execution or termination.  The taxpaying employer's name, the account number assigned, and any other information required by the commissioner must be provided by that person.

 

(e) Any contract subject to paragraph (a) must specifically inform the taxpaying employer of the assignment of the tax account under this section and the taxpaying employer's obligation under paragraph (b).  If there is a termination of the contract, the tax account is, as of the date of termination, immediately assigned to the taxpaying employer.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 6.  Minnesota Statutes 2008, section 268.051, subdivision 2, is amended to read:

 

Subd. 2.  Computation of tax rates; additional assessments.  (a) For each calendar year the commissioner shall must compute the tax rate of each taxpaying employer that qualifies for an experience rating by adding the base tax rate to the employer's experience rating along with assigning any appropriate additional assessment under paragraph (d) (c).


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(b) The base tax rate for the calendar year and any additional assessments under this subdivision are determined based upon the amount in the trust fund on March 31 of the prior year as a percentage of total wages paid in covered employment.  The base tax rate is:

 

(1) one-tenth of one percent if the trust fund is equal to or more than 0.75 percent;

 

(2) two-tenths of one percent if the trust fund is less than 0.75 percent but equal to or more than 0.65 percent;

 

(3) three-tenths of one percent if the trust fund is less than 0.65 percent but equal to or more than 0.55 percent; or

 

(4) four-tenths of one percent if the trust fund is less than 0.55 percent, but has a positive balance; or

 

(5) five-tenths of one percent if the trust fund has a negative balance and is borrowing from the federal unemployment trust fund in order to pay unemployment benefits as provided for under section 268.194, subdivision 6.

 

(c) There is a "falling trust fund adjustment" to the base tax rate for the calendar year if the amount in the trust fund on March 31 of the prior year is less than 0.75 percent of total wages paid in covered employment and:

 

(1) the amount in the trust fund on March 31 of the prior year is ten percent or more below the amount in the trust fund on March 31 of the year before that; or

 

(2) the amount in the trust fund on March 31 of the prior year is greater than the amount in the trust fund on June 30 of that same year.

 

If a "falling trust fund adjustment" is applicable, then the base tax rate is one-tenth of one percent greater than otherwise provided for under paragraph (b).

 

(d) In addition to the base tax rate, there is an additional assessment for the calendar year on the quarterly unemployment taxes due from every taxpaying employer if the amount in the trust fund on March 31 of the prior year is less than 0.55 percent of total wages paid in covered employment.  The assessment is as follows:

 

(1) a five percent assessment if the trust fund is less than 0.55 percent but equal to or more than 0.45 percent;

 

(2) a ten percent assessment if the trust fund is less than 0.45 percent but equal to or more than 0.35 percent; or

 

(3) a 14 percent assessment if the trust fund is less than 0.35 percent.

 

(e) (d) For the purposes of this subdivision, the trust fund does not include any money borrowed from the federal unemployment trust fund provided for in section 268.194, subdivision 6. 

 

(f) (e) For the purposes of this subdivision, total wages paid in covered employment are those wages paid to all employees in covered employment during the calendar year before the March 31 date used in paragraph (b).

 

(g) (f) The base tax rate and any additional assessments are assessed on all taxpaying employers to cover a portion of the costs to the trust fund for unemployment benefits paid that do not affect any single employer's future experience rating because:

 

(1) the employer's experience rating is limited by the maximum under subdivision 3, paragraph (b);

 

(2) the employer has ceased doing business; or


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(3) the unemployment benefits paid have been determined not to be used in computing the employer's experience rating under section 268.047, subdivision 2 or 3.

 

Sec. 7.  Minnesota Statutes 2008, section 268.051, subdivision 5, is amended to read:

 

Subd. 5.  Tax rate for new employers.  (a) Each new taxpaying employer that does not qualify for an experience rating under subdivision 3, except new employers in a high experience rating industry, must be assigned, for a calendar year, a tax rate the higher of (1) one percent, or (2) the tax rate computed, to the nearest one-hundredth 1/100 of a percent, by dividing the total amount of unemployment benefits paid all applicants during the 48 calendar months ending on June 30 of the prior calendar year by the total taxable wages of all taxpaying employers during the same period, plus the applicable base tax rate and any additional assessments under subdivision 2, paragraph (d).

 

(b) Each new taxpaying employer in a high experience rating industry that does not qualify for an experience rating under subdivision 3, must be assigned, for a calendar year, a tax rate the higher of 8.00 percent, (1) that assigned under paragraph (a), or (2) the tax rate, computed to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits paid to all applicants from high experience rating industry employers during the 48 calendar months ending on June 30 of the prior calendar year by the total taxable wages of all high experience rating industry employers during the same period, to a maximum provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any additional assessments under subdivision 2, paragraph (d). 

 

(c) An employer is considered to be in a high experience rating industry if:

 

(1) the employer is engaged in residential, commercial, or industrial construction, including general contractors;

 

(2) the employer is engaged in sand, gravel, or limestone mining;

 

(3) the employer is engaged in the manufacturing of concrete, concrete products, or asphalt; or

 

(4) the employer is engaged in road building, repair, or resurfacing, including bridge and tunnels and residential and commercial driveways and parking lots.

 

(c) (d) The commissioner shall must send to the new employer, by mail or electronic transmission, notice of the tax rate assigned.  An employer may appeal the assignment of a tax rate in accordance with the procedures in subdivision 6, paragraph (c).

 

Sec. 8.  Minnesota Statutes 2008, section 268.051, subdivision 7, is amended to read:

 

Subd. 7.  Tax rate buydown.  (a) Any taxpaying employer that has been assigned a tax rate based upon an experience rating, and has no amounts past due under this chapter, may, upon the payment of an amount equivalent to any portion or all of the unemployment benefits used in computing the experience rating plus a surcharge of 25 percent, obtain a cancellation of unemployment benefits used equal to the payment made, less the surcharge.  The payment is applied to the most recent unemployment benefits paid that are used in computing the experience rating.  Upon the payment, the commissioner shall must compute a new experience rating for the employer, and compute a new tax rate.

 

(b) Payments for a tax rate buydown may be made only by electronic payment and must be received within 120 calendar days from the beginning of the calendar year for which the tax rate is effective.

 

(c) For calendar years 2011, 2012, and 2013, the surcharge of 25 percent provided for in paragraph (a) does not apply.


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Sec. 9.  Minnesota Statutes 2009 Supplement, section 268.052, subdivision 2, is amended to read:

 

Subd. 2.  Election by state or political subdivision to be taxpaying employer.  (a) The state or political subdivision may elect to be a taxpaying employer for any calendar year if a notice of election is filed within 30 calendar days following January 1 of that calendar year.  The election is effective at the beginning of the next calendar quarter.  Upon election, the state or political subdivision must be assigned the new employer tax rate under section 268.051, subdivision 5, for the calendar year of the election and unless or until it qualifies for an experience rating under section 268.051, subdivision 3.

 

(b) An election is for a minimum period of two 24 calendar years months following the effective date of the election and continue unless a notice terminating the election is filed not later than 30 calendar days before the beginning of the calendar year.  The termination is effective at the beginning of the next calendar year quarter.

 

(c) (b) The method of payments to the trust fund under subdivisions 3 and 4 applies to all taxes paid by or due from the state or political subdivision that elects to be taxpaying employers under this subdivision.

 

(d) (c) A notice of election or a notice terminating election must be filed by electronic transmission in a format prescribed by the commissioner.

 

EFFECTIVE DATE.  This section is effective November 30, 2010.

 

Sec. 10.  Minnesota Statutes 2009 Supplement, section 268.053, subdivision 1, is amended to read:

 

Subdivision 1.  Election.  (a) Any nonprofit organization that has employees in covered employment must pay taxes on a quarterly basis in accordance with section 268.051 unless it elects to make reimbursements to the trust fund the amount of unemployment benefits charged to its reimbursable account under section 268.047.

 

The organization may elect to make reimbursements for a period of not less than two 24 calendar years months beginning with the date that the organization was determined to be an employer with covered employment by filing a notice of election not later than 30 calendar days after the date of the determination.

 

(b) Any nonprofit organization that makes an election will continue to be liable for reimbursements until it files a notice terminating its election not later than 30 calendar days before the beginning of the calendar year quarter the termination is to be effective.

 

(c) A nonprofit organization that has been making reimbursements that files a notice of termination of election must be assigned the new employer tax rate under section 268.051, subdivision 5, for the calendar year of the termination of election and unless or until it qualifies for an experience rating under section 268.051, subdivision 3.

 

(d) (c) Any nonprofit organization that has been paying taxes may elect to make reimbursements by filing no less than 30 calendar days before January 1 of any calendar year a notice of election.  The election is effective at the beginning of the next calendar quarter.  The election is not terminable by the organization for that and the next 24 calendar year months.

 

(e) (d) The commissioner may for good cause extend the period that a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive.

 

(f) (e) A notice of election or notice terminating election must be filed by electronic transmission in a format prescribed by the commissioner.

 

EFFECTIVE DATE.  This section is effective November 30, 2010.


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Sec. 11.  Minnesota Statutes 2008, section 268.07, as amended by Laws 2009, chapter 15, sections 5 and 6, and chapter 78, article 3, section 6, and article 4, sections 19 to 21, is amended to read:

 

268.07 BENEFIT ACCOUNT. 

 

Subdivision 1.  Application for unemployment benefits; determination of benefit account.  (a) An application for unemployment benefits may be filed in person, by mail, or by electronic transmission as the commissioner may require.  The applicant must be unemployed at the time the application is filed and must provide all requested information in the manner required.  If the applicant is not unemployed at the time of the application or fails to provide all requested information, the communication is not considered an application for unemployment benefits.

 

(b) The commissioner must examine each application for unemployment benefits to determine the base period and the benefit year, and based upon all the covered employment in the base period the commissioner shall must determine the weekly unemployment benefit amount available, if any, and the maximum amount of unemployment benefits available, if any.  The determination, which is a document separate and distinct from a document titled a determination of eligibility or determination of ineligibility issued under section 268.101, must be titled determination of benefit account.  A determination of benefit account must be sent to the applicant and all base period employers, by mail or electronic transmission.

 

(c) If a base period employer did not provide wage detail information for the applicant as required under section 268.044, or provided erroneous information, or wage detail is not yet due and the applicant is using an alternate base period under section 268.035, subdivision 4, paragraph (d), the commissioner may accept an applicant certification of wage credits, based upon the applicant's records, and issue a determination of benefit account. 

 

(d) An employer must provide wage detail information on an applicant within five calendar days of request by the commissioner, in a manner and format requested, when:

 

(1) the applicant is using an alternate base period under section 268.035, subdivision 4, paragraph (d); and

 

(2) wage detail under section 268.044 is not yet required to have been filed by the employer.

 

(e) The commissioner may, at any time within 24 months from the establishment of a benefit account, reconsider any determination of benefit account and make an amended determination if the commissioner finds that the wage credits listed in the determination was were incorrect for any reason.  An amended determination of benefit account must be promptly sent to the applicant and all base period employers, by mail or electronic transmission.  This subdivision does not apply to documents titled determinations of eligibility or determinations of ineligibility issued under section 268.101.

 

(f) If an amended determination of benefit account reduces the weekly unemployment benefit amount or maximum amount of unemployment benefits available, any unemployment benefits that have been paid greater than the applicant was entitled is considered an overpayment of unemployment benefits.  A determination or amended determination issued under this section that results in an overpayment of unemployment benefits must set out the amount of the overpayment and the requirement under section 268.18, subdivision 1, that the overpaid unemployment benefits must be repaid. 

 

Subd. 2.  Benefit account requirements and weekly unemployment benefit amount and maximum amount of unemployment benefits.  (a) Unless paragraph (b) applies, to establish a benefit account:

 

(1) using the primary base period under section 268.035, subdivision 4, paragraph (a), an applicant must have:


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(1) (i) wage credits in the high quarter of $1,000 or more; and

 

(2) (ii) wage credits, in other than the high quarter, of $250 or more.

 

To establish a benefit account; or

 

(2) using the secondary base period under section 268.035, subdivision 4, paragraph (b), an applicant must have wage credits in the high quarter of $1,000 or more.

 

(b) To establish a new benefit account within 52 calendar weeks following the expiration of the benefit year on a prior benefit account, an applicant must meet the requirements of paragraph (a) and must have performed services in covered employment in a calendar quarter that started after the effective date of the prior benefit account.  The wage credits for those services must be at least eight times the weekly benefit amount on the prior benefit account.  One of the reasons for this paragraph is to prevent an applicant from establishing a second benefit account as a result of one loss of employment.

 

Subd. 2a.  Weekly unemployment benefit amount and maximum amount of unemployment benefits available.  (b) (a) If an applicant has established a benefit account under subdivision 2, the weekly unemployment benefit amount available during the applicant's benefit year is the higher of:

 

(1) 50 percent of the applicant's average weekly wage during the base period, to a maximum of 66-2/3 percent of the state's average weekly wage; or

 

(2) 50 percent of the applicant's average weekly wage during the high quarter, to a maximum of 43 percent of the state's average weekly wage.

 

The applicant's average weekly wage under clause (1) is computed by dividing the total wage credits by 52.  The applicant's average weekly wage under clause (2) is computed by dividing the high quarter wage credits by 13.

 

(c) (b) The state's maximum weekly benefit amount, computed in accordance with section 268.035, subdivision 23, applies to a benefit account established effective on or after the last Sunday in October.  Once established, an applicant's weekly unemployment benefit amount is not affected by the last Sunday in October change in the state's maximum weekly unemployment benefit amount. 

 

(d) (c) The maximum amount of unemployment benefits available on any benefit account is the lower of:

 

(1) 33-1/3 percent of the applicant's total wage credits; or

 

(2) 26 times the applicant's weekly unemployment benefit amount.

 

Subd. 3.  Second benefit account requirements.  To establish a second benefit account following the expiration of a benefit year on a prior benefit account, an applicant must meet the requirements of subdivision 2 and must have performed services in covered employment after the effective date of the prior benefit account.  The wages paid for those services must be at least eight times the weekly unemployment benefit amount of the prior benefit account.  Part of the reason for this subdivision is to prevent an applicant from establishing more than one benefit account as a result of one loss of employment.

 

Subd. 3a.  Right of appeal.  (a) A determination or amended determination of benefit account is final unless an applicant or base period employer within 20 calendar days after the sending of the determination or amended determination files an appeal.  Every determination or amended determination of benefit account must contain a prominent statement indicating in clear language the consequences of not appealing.  Proceedings on the appeal are conducted in accordance with section 268.105. 


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(b) Any applicant or base period employer may appeal from a determination or amended determination of benefit account on the issue of whether services performed constitute employment and, whether the employment is considered covered employment, and whether money paid constitutes wages.  Proceedings on the appeal are conducted in accordance with section 268.105. 

 

Subd. 3b.  Limitations on applications and benefit accounts.  (a) An application for unemployment benefits is effective the Sunday of the calendar week that the application was filed.  An application for unemployment benefits may be backdated one calendar week before the Sunday of the week the application was actually filed if the applicant requests the backdating at the time the application is filed.  An application may be backdated only if the applicant had no employment during the period of the backdating.  If an individual attempted to file an application for unemployment benefits, but was prevented from filing an application by the department, the application is effective the Sunday of the calendar week the individual first attempted to file an application.

 

(b) A benefit account established under subdivision 2 is effective the date the application for unemployment benefits was effective.

 

(c) A benefit account, once established, may later be withdrawn only if:

 

(1) the applicant has not been paid any unemployment benefits on that benefit account; and

 

(2) a new application for unemployment benefits is filed and a new benefit account is established at the time of the withdrawal.

 

A determination or amended determination of eligibility or ineligibility issued under section 268.101, that was sent before the withdrawal of the benefit account, remains in effect and is not voided by the withdrawal of the benefit account.  A determination of ineligibility requiring subsequent earnings to satisfy the period of ineligibility under section 268.095, subdivision 10, applies to the weekly unemployment benefit amount on the new benefit account.

 

(d) An application for unemployment benefits is not allowed before the Sunday following the expiration of the benefit year on a prior benefit account.  Except as allowed under paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks.

 

EFFECTIVE DATE.  This section is effective for benefit accounts filed effective on or after the first Sunday following final enactment.

 

Sec. 12.  Minnesota Statutes 2009 Supplement, section 268.085, subdivision 1, is amended to read:

 

Subdivision 1.  Eligibility conditions.  An applicant may be eligible to receive unemployment benefits for any week if:

 

(1) the applicant has filed a continued request for unemployment benefits for that week under section 268.0865;

 

(2) the week for which unemployment benefits are requested is in the applicant's benefit year;

 

(3) the applicant was unemployed as defined in section 268.035, subdivision 26;

 

(4) the applicant was available for suitable employment as defined in subdivision 15.  The applicant's weekly unemployment benefit amount is reduced one-fifth for each day the applicant is unavailable for suitable employment.  This clause does not apply to an applicant who is in reemployment assistance training, or each day the applicant is on jury duty or serving as an election judge;


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(5) the applicant was actively seeking suitable employment as defined in subdivision 16.  This clause does not apply to an applicant who is in reemployment assistance training or who was on jury duty throughout the week;

 

(6) the applicant has served a nonpayable waiting period of one week that the applicant is otherwise entitled to some amount of unemployment benefits.  This clause does not apply if the applicant would have been entitled to federal disaster unemployment assistance because of a disaster in Minnesota, but for the applicant's establishment of a benefit account under section 268.07; and

 

(7) the applicant has been participating in reemployment assistance services, such as job search and resume writing classes, if the applicant has been determined in need of reemployment assistance services by the commissioner, unless the applicant has good cause for failing to participate.

 

Sec. 13.  Minnesota Statutes 2008, section 268.085, subdivision 9, is amended to read:

 

Subd. 9.  Business owners.  (a) Wage credits from an employer may not be used for unemployment benefit purposes by any applicant who:

 

(1) individually, jointly, or in combination with the applicant's spouse, parent, or child owns or controls directly or indirectly 25 percent or more interest in the employer; or

 

(2) is the spouse, parent, or minor child of any individual who owns or controls directly or indirectly 25 percent or more interest in the employer.

 

This subdivision is effective when the applicant has been paid five times the applicant's weekly unemployment benefit amount in the current benefit year.  This subdivision does not apply if the applicant had wages paid in covered employment of $7,500 or more from the employer covered by this subdivision in each of the 16 calendar quarters prior to the effective date of the benefit account and all taxes due on those wages have been paid.

 

(b) An officer of a taxpaying employer referred to in section 268.046, subdivision 1, is subject to the limitations of this subdivision.

 

Sec. 14.  Minnesota Statutes 2008, section 268.085, subdivision 16, is amended to read:

 

Subd. 16.  Actively seeking suitable employment defined.  (a) "Actively seeking suitable employment" means those reasonable, diligent efforts an individual in similar circumstances would make if genuinely interested in obtaining suitable employment under the existing conditions in the labor market area.  Limiting the search to positions that are not available or are above the applicant's training, experience, and qualifications is not "actively seeking suitable employment."

 

(b) To be considered "actively seeking suitable employment" an applicant must, when reasonable, contact those employers from whom the applicant was laid off because of lack of work and request suitable employment.

 

(c) If reasonable prospects of suitable employment in the applicant's usual or customary occupation do not exist, the applicant must actively seek other suitable employment to be considered "actively seeking suitable employment." This applies to an applicant who is seasonally unemployed.

 

(d) Actively seeking a suitable job assignment or other employment with a staffing service is considered actively seeking suitable employment. 

 

(e) An applicant who is seeking employment only through a union is considered actively seeking suitable employment if the applicant is in an occupation where hiring in that locality is done through the union.  If the applicant is a union member who is restricted to obtaining employment among signatory contractors in the


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construction industry, seeking employment only with those signatory contractors is considered actively seeking employment.  The applicant must be a union member in good standing, registered with the union for employment, and in compliance with other union rules to be considered "actively seeking suitable employment."

 

Sec. 15.  Minnesota Statutes 2009 Supplement, section 268.095, subdivision 2, is amended to read:

 

Subd. 2.  Quit defined.  (a) A quit from employment occurs when the decision to end the employment was, at the time the employment ended, the employee's.

 

(b) An employee who has been notified that the employee will be discharged in the future, who chooses to end the employment while employment in any capacity is still available, is considered to have quit the employment.

 

(c) An employee who seeks to withdraw a previously submitted notice of quitting is considered to have quit the employment if the employer does not agree that the notice may be withdrawn.

 

(d) An applicant who, within five calendar days after completion of a suitable temporary job assignment from a staffing service employer, (1) fails without good cause to affirmatively request an additional suitable job assignment, (2) refuses without good cause an additional suitable job assignment offered, or (3) accepts employment with the client of the staffing service, is considered to have quit employment with the staffing service.  Accepting employment with the client of the staffing service meets the requirements of the exception to ineligibility under subdivision 1, clause (2).

 

This paragraph applies only if, at the time of beginning of employment with the staffing service employer, the applicant signed and was provided a copy of a separate document written in clear and concise language that informed the applicant of this paragraph and that unemployment benefits may be affected.

 

For purposes of this paragraph, "good cause" is a reason that is significant and would compel an average, reasonable worker, who would otherwise want an additional temporary suitable job assignment with the staffing service employer, (1) to fail to contact the staffing service employer, or (2) to refuse an offered assignment.

 

For purposes of this paragraph, a "staffing service employer" is an employer whose business involves employing individuals directly for the purpose of furnishing temporary job assignment workers to clients of the staffing service.

 

Sec. 16.  Minnesota Statutes 2008, section 268.095, subdivision 5, is amended to read:

 

Subd. 5.  Discharge defined.  (a) A discharge from employment occurs when any words or actions by an employer would lead a reasonable employee to believe that the employer will no longer allow the employee to work for the employer in any capacity.  A layoff because of lack of work is considered a discharge.  A suspension from employment without pay of more than 30 calendar days is considered a discharge.

 

(b) An employee who gives notice of intention to quit the employment and is not allowed by the employer to work the entire notice period is considered discharged from the employment as of the date the employer will no longer allow the employee to work.  If the discharge occurs within 30 calendar days before the intended date of quitting, then, as of the intended date of quitting, the separation from employment is considered a quit from employment subject to subdivision 1.

 

(c) The end of a job assignment with the client of a staffing service is considered a discharge from employment with the staffing service unless section 268.095, subdivision 2, paragraph (d), applies.


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Sec. 17.  Minnesota Statutes 2009 Supplement, section 268.095, subdivision 6, is amended to read:

 

Subd. 6.  Employment misconduct defined.  (a) Employment misconduct means any intentional, negligent, or indifferent conduct, on the job or off the job that displays clearly:

 

(1) a serious violation of the standards of behavior the employer has the right to reasonably expect of the employee; or

 

(2) a substantial lack of concern for the employment. 

 

(b) Regardless of paragraph (a), the following is not employment misconduct:

 

(1) conduct that was a consequence of the applicant's mental illness or impairment;

 

(2) conduct that was a consequence of the applicant's inefficiency or inadvertence;

 

(3) simple unsatisfactory conduct;

 

(4) conduct an average reasonable employee would have engaged in under the circumstances;

 

(5) poor performance because of conduct that was a consequence of the applicant's inability or incapacity;

 

(6) good faith errors in judgment if judgment was required;

 

(7) absence because of illness or injury of the applicant, with proper notice to the employer;

 

(8) absence, with proper notice to the employer, in order to provide necessary care because of the illness, injury, or disability of an immediate family member of the applicant;

 

(9) conduct that was a direct result consequence of the applicant's chemical dependency, unless the applicant was previously diagnosed chemically dependent or had treatment for chemical dependency, and since that diagnosis or treatment has failed to make consistent efforts to control the chemical dependency; or

 

(10) conduct that was a result consequence of the applicant, or an immediate family member of the applicant, being a victim of domestic abuse as defined under section 518B.01.  Domestic abuse must be shown as provided for in subdivision 1, clause (9). 

 

(c) Regardless of paragraph (b), clause (9), conduct in violation of sections 169A.20, 169A.31, or 169A.50 to 169A.53 that interferes with or adversely affects the employment is employment misconduct. 

 

(d) If the conduct for which the applicant was discharged involved only a single incident, that is an important fact that must be considered in deciding whether the conduct rises to the level of employment misconduct under paragraph (a).

 

(e) The definition of employment misconduct provided by this subdivision is exclusive and no other definition applies.

 

EFFECTIVE DATE.  This section is effective for determinations under section 268.101, subdivision 2, and appeal decisions under section 268.105, subdivision 1, issued on and after the Sunday following final enactment.


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Sec. 18.  Minnesota Statutes 2008, section 268.101, is amended by adding a subdivision to read:

 

Subd. 2a.  Telephone number.  Every determination issued under subdivision 2 must include a prominently displayed telephone number that an applicant or involved employer can call to speak with an unemployment insurance specialist and obtain further explanation about the determination and have any questions answered.  The specialist must, when appropriate, issue an amended determination as provided for in subdivision 4.  The listed telephone number must be unique to a specialized call group trained to handle calls involving determinations.

 

EFFECTIVE DATE.  This section is effective October 3, 2010, and expires September 30, 2012.

 

Sec. 19.  Minnesota Statutes 2009 Supplement, section 268.105, subdivision 1, is amended to read:

 

Subdivision 1.  Evidentiary hearing by unemployment law judge.  (a) Upon a timely appeal having been filed, the department must send, by mail or electronic transmission, a notice of appeal to all involved parties that an appeal has been filed, and that a de novo due process evidentiary hearing will be scheduled.  The notice must set out the parties' rights and responsibilities regarding the hearing.  The notice must explain that the facts will be determined by the unemployment law judge based upon a preponderance of the evidence.  The notice must explain in clear and simple language the meaning of the term "preponderance of the evidence." The department must set a time and place for a de novo due process evidentiary hearing and send notice to any involved applicant and any involved employer, by mail or electronic transmission, not less than ten calendar days before the date of the hearing.

 

(b) The evidentiary hearing is conducted by an unemployment law judge as an evidence gathering inquiry.  At the beginning of the hearing the unemployment law judge must fully explain how the hearing will be conducted, that the applicant has the right to request that the hearing be rescheduled so that documents or witnesses can be subpoenaed, that the facts will be determined based on a preponderance of the evidence, and, in clear and simple language, the meaning of the term "preponderance of the evidence." The unemployment law judge must ensure that all relevant facts are clearly and fully developed.  The department may adopt rules on evidentiary hearings.  The rules need not conform to common law or statutory rules of evidence and other technical rules of procedure.  The department has discretion regarding the method by which the evidentiary hearing is conducted.  A report of any employee of the department, except a determination, made in the regular course of the employee's duties, is competent evidence of the facts contained in it.  An affidavit or written statement based on personal knowledge and signed under penalty of perjury is competent evidence of the facts contained in it; however, the veracity of statements contained within the document or the credibility of the witness making the statement may be disputed with other documents or testimony and production of such documents or testimony may be compelled by subpoena.

 

(c) After the conclusion of the hearing, upon the evidence obtained, the unemployment law judge must make findings of fact and decision and send those, by mail or electronic transmission, to all involved parties.  When the credibility of an involved party or witness testifying in an evidentiary hearing has a significant effect on the outcome of a decision, the unemployment law judge must set out the reason for crediting or discrediting that testimony.  The unemployment law judge's decision is final unless a request for reconsideration is filed under subdivision 2.

 

(d) Regardless of paragraph (c), if the appealing party fails to participate in the evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal by summary order.  By failing to participate, the appealing party is considered to have failed to exhaust available administrative remedies unless the appealing party files a request for reconsideration under subdivision 2 and establishes good cause for failing to participate in the evidentiary hearing under subdivision 2, paragraph (d).  Submission of a written statement does not constitute participation.  The applicant must participate personally and appearance solely by a representative does not constitute participation.

 

(e) Only employees of the department who are attorneys licensed to practice law in Minnesota may serve as the chief unemployment law judge, senior unemployment law judges who are supervisors, or unemployment law judges.  The commissioner must designate a chief unemployment law judge.  The chief unemployment law judge may transfer to another unemployment law judge any proceedings pending before an unemployment law judge.


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(f) A full-time unemployment law judge must be paid a salary within a range directly tied to the salary set under section 15A.083, subdivision 7, for a workers' compensation judge.  The salary paid within that range to any single unemployment law judge is based on experience and performance.

 

Sec. 20.  Minnesota Statutes 2009 Supplement, section 268.136, subdivision 1, is amended to read:

 

Subdivision 1.  Shared work agreement requirements.  (a) An employer may submit a proposed shared work plan for an employee group to the commissioner for approval in a manner and format set by the commissioner.  The proposed agreement must include:

 

(1) a certified statement that the normal weekly hours of work of all of the proposed participating employees were full time but are now reduced, or will be reduced, with a corresponding reduction in pay, in order to prevent layoffs;

 

(2) the name and Social Security number of each participating employee;

 

(3) a certified statement of when each participating employee was first hired by the employer, which must be at least one year before the proposed agreement is submitted;

 

(4) the hours of work each participating employee will work each week for the duration of the agreement, which must be at least 20 hours and no more than 32 hours per week, except that the agreement may provide for a uniform vacation shutdown of up to two weeks;

 

(5) the proposed duration of the agreement, which must be at least two months and not more than one year, although an agreement may be extended for up to an additional year upon approval of the commissioner;

 

(6) a starting date beginning on a Sunday at least 15 calendar days after the date the proposed agreement is submitted; and

 

(7) a signature of an owner or officer of the employer who is listed as an owner or officer on the employer's account under section 268.045.

 

(b) An agreement may not be approved for an employer that:

 

(1) has any unemployment tax or reimbursements, including any interest, fees, or penalties, due but unpaid; or

 

(2) has the maximum experience rating provided for under section 268.051, subdivision 3; or

 

(3) is in a high-experience rating industry as defined in section 268.051, subdivision 5.

 

Sec. 21.  Minnesota Statutes 2008, section 268.184, subdivision 1, is amended to read:

 

Subdivision 1.  Administrative penalties.  (a) The commissioner shall penalize an employer if that employer or any employee, officer, or agent of that employer, is in collusion with any applicant for the purpose of assisting the applicant to receive unemployment benefits fraudulently.  The penalty is $500 or the amount of unemployment benefits determined to be overpaid, whichever is greater.

 

(b) The commissioner shall penalize an employer if that employer or any employee, officer, or agent of that employer (1) made a false statement or representation knowing it to be false, (2) made a false statement or representation without a good faith belief as to correctness of the statement or representation, or (3) knowingly failed to disclose a material fact;, or (4) made an offer of employment to an applicant when, in fact, the employer had no employment available, but only if the employer's action:


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(i) was taken to prevent or reduce the payment of unemployment benefits to any applicant;

 

(ii) was taken to reduce or avoid any payment required from an employer under this chapter or section 116L.20; or

 

(iii) caused an overpayment of unemployment benefits to an applicant.

 

The penalty is $500, or 50 percent of the overpaid or reduced unemployment benefits or payment required, whichever is greater.

 

(c) The commissioner shall penalize an employer if that employer failed or refused to honor a subpoena issued under section 268.105, subdivision 4, or section 268.188.  The penalty is $500 and any costs of enforcing the subpoena, including attorney fees.

 

(d) Penalties under this subdivision are in addition to any other penalties and subject to the same collection procedures that apply to past due taxes.  Penalties must be paid within 30 calendar days of assessment and credited to the contingent account.

 

(e) The assessment of the penalty is final unless the employer files an appeal within 20 calendar days after the sending of notice of the penalty to the employer by mail or electronic transmission.  Proceedings on the appeal are conducted in accordance with section 268.105.

 

Sec. 22.  SPECIAL STATE EXTENDED UNEMPLOYMENT INSURANCE PROGRAM. 

 

Subdivision 1.  Eligibility.  (a) Special state extended unemployment insurance benefits are payable under this section to an applicant who does not qualify for extended unemployment insurance benefits under Minnesota Statutes, section 268.115, solely because the applicant does not have wage credits of at least 40 times the applicant's weekly benefit amount.

 

(b) Except as provided in paragraph (a), all requirements for extended unemployment benefits under Minnesota Statutes, section 268.115, and all other requirements of Minnesota Statutes, chapter 268, must be met in order for an applicant to be eligible for special state extended unemployment insurance benefits under this section.

 

(c) Except as provided for in paragraph (d), special state extended unemployment insurance benefits are payable in the same amounts, for the same duration, and for the same time period as provided for under Minnesota Statutes, section 268.115.

 

(d) The maximum amount of special state extended unemployment insurance benefits under this section available to an applicant is reduced by the amount of special state emergency unemployment insurance benefits paid the applicant under Laws 2009, chapter 1, section 2.

 

Subd. 2.  Payment from trust fund.  Special state extended unemployment insurance benefits are payable from the Minnesota unemployment insurance trust fund.  Special state extended unemployment insurance benefits must not be used in computing the future unemployment insurance tax rate of a taxpaying employer, and they must not be charged to the reimbursing account of government or nonprofit employers.

 

Subd. 3.  Expiration.  This section expires on March 26, 2011, and no benefits may be paid under this section for a week beginning after that date.

 

EFFECTIVE DATE.  This section is effective June 30, 2010.


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Sec. 23.  LEAVES OF ABSENCE. 

 

Minnesota Statutes, section 268.088, applies to leaves of absence taken by workers at the New Ulm location of 3M during 2009.  The department must, notwithstanding any prior determination or appeal decision, redetermine an applicant's entitlement to unemployment benefits under this section.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 24.  SPECIAL STATE EMERGENCY UNEMPLOYMENT COMPENSATION. 

 

Notwithstanding the June 30, 2010, expiration date of Laws 2009, chapter 1, section 2, subdivision 4, if an applicant has filed for special state emergency unemployment compensation under that law for a week beginning prior to June 30, 2010, but has not exhausted the maximum amount available to the applicant under that law, the applicant may continue to receive special state emergency unemployment compensation under that law up to the applicant's determined maximum under that law.  This section expires March 26, 2011, and no benefits may be paid pursuant to this section for a week beginning after that date.

 

Sec. 25.  NEW BENEFIT ACCOUNTS. 

 

If an applicant establishes a new benefit account under Minnesota Statutes, section 268.07, subdivision 2, paragraph (b), within 39 weeks of the expiration of the benefit year on a prior benefit account, notwithstanding Minnesota Statutes, section 268.07, subdivision 2a, paragraph (a), the weekly benefit amount on the new benefit account will not be less than 80 percent of the weekly benefit amount on the prior benefit account. 

 

EFFECTIVE DATE.  This section applies to benefit accounts effective on or after the first Sunday following enactment and expires the earlier of:  (1) the effective date of any federal legislation allowing an applicant to continue to collect federal emergency unemployment compensation, notwithstanding the applicant qualifying for a new regular state benefit account under Minnesota Statutes, section 268.07, subdivision 2, paragraph (b); or (2) June 30, 2011.

 

Sec. 26.  VACATION PAY AND UNEMPLOYMENT BENEFITS. 

 

An individual who received unemployment benefits in 2009 shall not be determined overpaid under Minnesota Statutes, section 268.18, subdivision 1, because of receipt of vacation pay in 2009 which was earned in 2008 under a collective bargaining agreement with an employer located in Hibbing that had layoffs in May 2009 of over 400 workers.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 27.  REVISOR'S INSTRUCTION. 

 

The revisor of statutes shall renumber each section of Minnesota Statutes listed in column A with the number in column B.

 

                                      Column A                                                                               Column B

 

                          268.035, subdivision 12b                                                   268.035, subdivision 12d

                          268.035, subdivision 21a                                                   268.035, subdivision 21c

                          268.035, subdivision 20a                                                   268.035, subdivision 21b

                          268.035, subdivision 25a                                                   268.035, subdivision 25c


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ARTICLE 3

 

LABOR STANDARDS AND WAGES; LICENSING AND FEES

 

Section 1.  Minnesota Statutes 2008, section 181.723, subdivision 5, is amended to read:

 

Subd. 5.  Application.  To obtain an independent contractor exemption certificate, the individual must submit, in the manner prescribed by the commissioner, a complete application and the certificate fee required under subdivision 14.

 

(a) A complete application must include all of the following information:

 

(1) the individual's full name;

 

(2) the individual's residence address and telephone number;

 

(3) the individual's business name, address, and telephone number;

 

(4) the services for which the individual is seeking an independent contractor exemption certificate;

 

(5) the individual's Social Security number;

 

(6) the individual's or the individual's business federal employer identification number, if a number has been issued to the individual or the individual's business;

 

(7) any information or documentation that the commissioner requires by rule that will assist the department in determining whether to grant or deny the individual's application; and

 

(8) the individual's sworn statement that the individual meets all of the following conditions:

 

(i) maintains a separate business with the individual's own office, equipment, materials, and other facilities;

 

(ii) holds or has applied for a federal employer identification number or has filed business or self-employment income tax returns with the federal Internal Revenue Service if the person has performed services in the previous year for which the individual is seeking the independent contractor exemption certificate;

 

(iii) operates under contracts to perform specific services for specific amounts of money and under which the individual controls the means of performing the services;

 

(iv) incurs the main expenses related to the service that the individual performs under contract;

 

(v) is responsible for the satisfactory completion of services that the individual contracts to perform and is liable for a failure to complete the service;

 

(vi) receives compensation for service performed under a contract on a commission or per-job or competitive bid basis and not on any other basis;

 

(vii) may realize a profit or suffer a loss under contracts to perform service;

 

(viii) has continuing or recurring business liabilities or obligations; and


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(ix) the success or failure of the individual's business depends on the relationship of business receipts to expenditures.

 

(b) Individuals who are applying for or renewing a residential building contractor or residential remodeler license under sections 326B.197, 326B.802, 326B.805, 326B.81, 326B.815, 326B.821 to 326B.86, 326B.87 to 326B.885, and 327B.041, and any rules promulgated pursuant thereto, may simultaneously apply for or renew an independent contractor exemption certificate.  The commissioner shall create an application form that allows for the simultaneous application for both a residential building contractor or residential remodeler license and an independent contractor exemption certificate.  If individuals simultaneously apply for or renew a residential building contractor or residential remodeler license and an independent contractor exemption certificate using the form created by the commissioner, individuals shall only be required to provide, in addition to the information required by section 326B.83 and rules promulgated pursuant thereto, the sworn statement required by paragraph (a), clause (8), and any additional information required by this subdivision that is not also required by section 326B.83 and any rules promulgated thereto.  When individuals submit a simultaneous application on the form created by the commissioner for both a residential building contractor or residential remodeler license and an independent contractor exemption certificate, the application fee shall be $150.  An independent contractor exemption certificate that is in effect before March 1, 2009, shall remain in effect until March 1, 2011 2013, unless revoked by the commissioner or canceled by the individual.

 

(c) Within 30 days of receiving a complete application and the certificate fee, the commissioner must either grant or deny the application.  The commissioner may deny an application for an independent contractor exemption certificate if the individual has not submitted a complete application and certificate fee or if the individual does not meet all of the conditions for holding the independent contractor exemption certificate.  The commissioner may revoke an independent contractor exemption certificate if the commissioner determines that the individual no longer meets all of the conditions for holding the independent contractor exemption certificate, commits any of the actions set out in subdivision 7, or fails to cooperate with a department investigation into the continued validity of the individual's certificate.  Once issued, an independent contractor exemption certificate remains in effect for two four years unless:

 

(1) revoked by the commissioner; or

 

(2) canceled by the individual.

 

(d) If the department denies an individual's original or renewal application for an independent contractor exemption certificate or revokes an independent contractor exemption certificate, the commissioner shall issue to the individual an order denying or revoking the certificate.  The commissioner may issue an administrative penalty order to an individual or person who commits any of the actions set out in subdivision 7.

 

(e) An individual or person to whom the commissioner issues an order under paragraph (d) shall have 30 days after service of the order to request a hearing.  The request for hearing must be in writing and must be served on or faxed to the commissioner at the address or facsimile number specified in the order by the 30th day after service of the order.  If the individual does not request a hearing or if the individual's request for a hearing is not served on or faxed to the commissioner by the 30th day after service of the order, the order shall become a final order of the commissioner and will not be subject to review by any court or agency.  The date on which a request for hearing is served by mail shall be the postmark date on the envelope in which the request for hearing is mailed.  If the individual serves or faxes a timely request for hearing, the hearing shall be a contested case hearing and shall be held in accordance with chapter 14.

 

EFFECTIVE DATE.  This section is effective retroactively from July 1, 2008.


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Sec. 2.  [184B.20] INFLATABLE AMUSEMENT EQUIPMENT. 

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the terms defined in this subdivision have the meanings given.

 

(b) "Commercial use" means regular use of an inflatable for profit by an owner at a permanently located facility:

 

(1) to which the general public is invited; or

 

(2) which the owner makes available at that facility for private parties or other events.

 

"Commercial use" does not include use of an inflatable (i) at a carnival, festival, fair, private party, or similar venue at a location other than the permanently located facility, or (ii) at a facility where the use of the inflatable is incidental to the primary use of the facility.

 

(c) "Inflatable" means an amusement device, used to bounce or otherwise play on, that incorporates a structural and mechanical system and employs a high-strength fabric or film that achieves its strength, shape, and stability by tensioning from internal air pressure.

 

(d) "Owner" means a person who owns, leases as lessee, or controls the operation of an inflatable for commercial use.

 

(e) "Person" has the meaning given in section 302A.011, subdivision 22.

 

(f) "Supervisor" means an individual stationed within close proximity to an inflatable during its use, for the purpose of supervising its safe use.

 

(g) "Trained" means that an individual has received instruction in how to supervise the safe use of inflatables in accordance with industry and ASTM standards.

 

Subd. 2.  Prohibition.  No owner shall provide an inflatable for commercial use in this state by others unless the owner complies with this section.

 

Subd. 3.  Protection against injuries from falls.  An inflatable that is in commercial use must be placed in a manner that complies with ASTM Standard F 2374.07, adopted by the American Society for Testing and Materials, including any future updates to that standard.

 

Subd. 4.  Supervision by trained person required.  No owner of an inflatable shall allow commercial use of the inflatable unless a trained supervisor is present in close proximity to the inflatable and is actively supervising its use.  The ratio of supervisors to inflatables must comply with ASTM Standard F 2374.07, as referenced under subdivision 3.

 

Subd. 5.  Insurance required; waiver of liability limited.  (a) An owner of an inflatable that is subject to subdivision 2 shall maintain liability insurance covering liability for a death or injury resulting from commercial use of the inflatable with limits of no less than $1,000,000 per occurrence and $2,000,000 aggregate per year.  The insurance shall also include medical payments coverage of no less than $5,000 per occurrence, which may be limited to injuries incurred while using an inflatable, including getting on or off of the inflatable.  The insurance must be issued by an insurance company authorized to issue the coverage in this state by the commissioner of commerce, and must be kept in force during the entire period of registration.  In the event of a policy cancellation, the insurer will send written notice to the commissioner of labor and industry at the same time that a cancellation request is received from or a notice is sent to the insured. 


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(b) A waiver of liability signed by or on behalf of a minor for injuries arising out of the negligence of the owner or the owner's employee or designee is void.

 

Subd. 6.  Registration required.  An owner of an inflatable that is subject to subdivision 2 must obtain and maintain a current registration with the commissioner of labor and industry.  The registration information must include the name, address, telephone number, and e-mail address of the owner, the street address of each facility at which the owner regularly provides inflatables for commercial use in this state by others, and a current insurance certificate of coverage proving full compliance with subdivision 5.  The commissioner shall issue and renew a certificate of registration only to owners who comply with this section.  The commissioner shall charge a registration fee of $100 for a two-year registration designed to cover the cost of registration and enforcement.  Fee receipts must be deposited in the state treasury and credited to the construction code fund.  The registration certificate shall be issued and renewed for a two-year period.  The registrant shall promptly notify the commissioner in writing of any changes in the registration information required in this subdivision.

 

Subd. 7.  Enforcement.  The commissioner of labor and industry shall enforce this section and may use for that purpose section 326B.082 and any powers otherwise available to the commissioner for enforcement purposes, including suspension or revocation of the person's registration and assessment of fines.

 

EFFECTIVE DATE.  This section is effective August 1, 2010.

 

Sec. 3.  [326B.091] DEFINITIONS. 

 

Subdivision 1.  Applicability.  For purposes of sections 326B.091 to 326B.098, the terms defined in this section have the meanings given them.

 

Subd. 2.  Applicant.  "Applicant" means a person who has submitted to the department an application for a license.

 

Subd. 3.  License.  "License" means any registration, certification, or other form of approval authorized by chapters 326B and 327B to be issued by the commissioner or department as a condition of doing business or conducting a trade, profession, or occupation in Minnesota.  License includes specifically but not exclusively an authorization issued by the commissioner or department:  to perform electrical work, plumbing or water conditioning work, high pressure piping work, or residential building work of a residential contractor, residential remodeler, or residential roofer; to install manufactured housing; to serve as a building official; or to operate a boiler or boat.

 

Subd. 4.  Licensee.  "Licensee" means the person named on the license as the person authorized to do business or conduct the trade, profession, or occupation in Minnesota.

 

Subd. 5.  Notification date.  "Notification date" means the date of the written notification from the department to an applicant that the applicant is qualified to take the examination required for licensure.

 

Subd. 6.  Renewal deadline.  "Renewal deadline," when used with respect to a license, means 30 days before the date that the license expires.

 

Sec. 4.  [326B.092] FEES. 

 

Subdivision 1.  Licenses requiring examination administered by commissioner.  (a) If the applicant for a license must pass an examination administered by the commissioner in order to obtain the license, then the application for the initial license must be accompanied by an application and examination fee of $50, which is separate from the license fee.  The license fee is due after the applicant passes the examination and before the license is issued.


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(b) If the applicant for a Minnesota license holds a license in another state and is seeking Minnesota licensure without examination based on reciprocity, then the application for the Minnesota license must be accompanied by the application and examination fee of $50, which is separate from the license fee.  If the commissioner approves the application, then the license fee is due before the license is issued.

 

Subd. 2.  Licenses not requiring examination administered by commissioner.  If the applicant for a license is not required to pass an examination in order to obtain the license, or is required to pass an examination that is not administered by the commissioner, then the license fee must accompany the application for the license.  If the application is for a license issued under sections 326B.802 to 326B.885 and is not an application for license renewal, then the contractor recovery fund fee required under section 326B.89, subdivision 3, is due after the department has determined that the applicant meets the qualifications for licensing and before the license is issued.

 

Subd. 3.  Late fee.  The department must receive a complete application for license renewal by the renewal deadline but not more than 90 days before the renewal deadline.  If the department receives a renewal application after the expiration of the license, then the renewal application must be accompanied by a late fee equal to one-half of the license renewal fee; except that, for the purpose of calculating the late fee only, the license renewal fee shall not include any contractor recovery fund fee required by section 326B.89, subdivision 3.

 

Subd. 4.  Lapsed licensed fee.  If the department receives a renewal application within two years after expiration of the license, the renewal application must be accompanied by all license renewal fees to cover the period that the license was expired, plus the late fee described in subdivision 3 and the license renewal fee for the current renewal period.

 

Subd. 5.  Insufficient fees.  If the applicant does not include all required fees with the application, then the application will be incomplete and the department will notify the applicant of the amount of the deficiency.

 

Subd. 6.  Fees nonrefundable.  Application and examination fees, license fees, license renewal fees, and late fees are nonrefundable except for:

 

(1) license renewal fees received more than two years after expiration of the license, as described in section 326B.094, subdivision 2;

 

(2) any overpayment of fees; and

 

(3) if the license is not renewed, the contractor recovery fund fee and any additional assessment paid under subdivision 7, paragraph (e).

 

Subd. 7.  License fees and license renewal fees.  (a) The license fee for each license except a renewed license shall be the base license fee plus any applicable board fee, as set forth in this subdivision.  The license renewal fee for each renewed license is the base license fee plus any applicable board fee, continuing education fee, and contractor recovery fund fee and additional assessment, as set forth in this subdivision.

 

(b) For purposes of this section, "license duration" means the number of years for which the license is issued except that:

 

(1) if the initial license is not issued for a whole number of years, the license duration shall be rounded up to the next whole number; and

 

(2) if the department receives an application for license renewal after the renewal deadline, license duration means the number of years for which the renewed license would have been issued if the renewal application had been submitted on time and all other requirements for renewal had been met.


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(c) The base license fee shall depend on whether the license is classified as an entry level, master, journeyman, or business license, and on the license duration.  The base license fee shall be: 

 

                                                                                              License Duration

 

License Classification                  1 Year                                   2 Years                                  3 Years

 

Entry level                                       $10                                         $20                                         $30

Journeyman                                    $20                                         $40                                         $60

Master                                              $40                                         $80                                       $120

Business                                           $90                                       $180                                       $270

 

(d) If there is a continuing education requirement for renewal of the license, then a continuing education fee must be included in the renewal license fee.  The continuing education fee for all license classifications shall be:  $10 if the renewal license duration is one year; $20 if the renewal license duration is two years; and $30 if the renewal license duration is three years.

 

(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.93, then a board fee must be included in the license fee and the renewal license fee.  The board fee for all license classifications shall be:  $4 if the license duration is one year; $8 if the license duration is two years; and $12 if the license duration is three years.

 

(f) If the application is for the renewal of a license issued under sections 326B.802 to 326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision 3, and any additional assessment required under section 326B.89, subdivision 16, must be included in the license renewal fee.

 

Sec. 5.  [326B.093] LICENSES REQUIRING EXAMINATION ADMINISTERED BY COMMISSIONER. 

 

Subdivision 1.  Qualifications for examination.  If the applicant for a license must pass an examination administered by the commissioner in order to obtain the license, then the applicant's complete application must demonstrate that the applicant is qualified to take the examination.  The applicant is qualified to take the examination if the applicant meets all requirements for the license except for passing the examination.

 

Subd. 2.  Not qualified for examination.  If the applicant is not qualified to take the examination, then the commissioner must deny the application.  The applicant may subsequently submit another application, accompanied by the required fee.

 

Subd. 3.  Taking the examination.  If the applicant is qualified to take the examination, then the department must notify the applicant, and the applicant may schedule a time to take the examination within one year after the notification date.  If the applicant does not take the examination at the scheduled time, the applicant may, one time only, reschedule a time to take the examination on a date within one year after the notification date.  If the applicant fails to take the examination within one year after the notification date, the commissioner must deny the application and the applicant forfeits the application/examination fee.  The applicant may subsequently submit another application, accompanied by the required application/examination fee.

 

Subd. 4.  Examination results.  If the applicant receives a passing score on the examination and meets all other requirements for licensure, the commissioner must approve the application and notify the applicant of the approval within 60 days of the date of the passing score.  The applicant must, within 90 days after the notification of approval, pay the license fee.  Upon receipt of the license fee, the commissioner must issue the license.  If the applicant does not pay the license fee within 90 days after the notification of approval, the commissioner will rescind the approval and must deny the application.  If the applicant does not receive a passing score on the examination, the commissioner must deny the application.  If the application is denied because of the applicant's failure to receive a passing score on the examination, then the applicant cannot submit a new application for the license until at least 30 days after the notification of denial.


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Sec. 6.  [326B.094] RENEWAL OF LICENSES. 

 

Subdivision 1.  Expiration of licenses.  Unless and until the department or commissioner issues a renewal of a license, the license expires on the expiration date printed on the license.  While the license is expired, the licensee cannot perform the activities authorized by the license.

 

Subd. 2.  Availability of renewal.  A licensee may apply to renew a license no later than two years after the expiration of the license.  If the department receives a complete renewal application no later than two years after the expiration of the license, then the department must approve or deny the renewal application within 60 days of receiving the complete renewal application.  If the department receives a renewal application more than two years after the expiration of the license, the department must return the renewal license fee to the applicant without approving or denying the application.  If the licensee wishes to obtain a valid license more than two years after expiration of the license, the licensee must apply for a new license.

 

Subd. 3.  Deadline for avoiding license expiration.  The department must receive a complete application to renew a license no later than the renewal deadline.  If the department does not receive a complete application by the renewal deadline, the license may expire before the department has either approved or denied the renewal application.

 

Sec. 7.  [326B.095] INCOMPLETE LICENSE APPLICATIONS. 

 

This section applies to both applications for initial licenses and license renewal applications.  If the department determines that an application is incomplete, the department must notify the applicant of the deficiencies that must be corrected in order to complete the application.  If the applicant wishes to complete the application, the department must receive the completed application within 90 days after the date the department mailed or delivered the incomplete application to the applicant.  If the department does not receive the completed application by this deadline, the commissioner must deny the application and the applicant will forfeit all fees except as provided in section 326B.092, subdivision 6.  If the application is for license renewal and the department receives the corrected application after the license has expired, then the corrected application must be accompanied by the late fee.

 

Sec. 8.  [326B.096] REINSTATEMENT OF LICENSES. 

 

Subdivision 1.  Reinstatement after revocation.  (a) If a license is revoked under this chapter and if an applicant for a license needs to pass an examination administered by the commissioner before becoming licensed, then, in order to have the license reinstated, the person who holds the revoked license must:

 

(1) retake the examination and achieve a passing score; and

 

(2) meet all other requirements for an initial license, including payment of the application and examination fee and the license fee.  The person holding the revoked license is not eligible for Minnesota licensure without examination based on reciprocity.

 

(b) If a license is revoked under a chapter other than this chapter, then, in order to have the license reinstated, the person who holds the revoked license must:

 

(1) apply for reinstatement to the commissioner no later than two years after the effective date of the revocation;

 

(2) pay a $100 reinstatement application fee and any applicable renewal license fee; and


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(3) meet all applicable requirements for licensure, except that, unless required by the order revoking the license, the applicant does not need to retake any examination and does not need to repay a license fee that was paid before the revocation.

 

Subd. 2.  Reinstatement after suspension.  If a license is suspended, then, in order to have the license reinstated, the person who holds the suspended license must:

 

(1) apply for reinstatement to the commissioner no later than two years after the completion of the suspension period;

 

(2) pay a $100 reinstatement application fee and any applicable renewal license fee; and

 

(3) meet all applicable requirements for licensure, except that, unless required by the order suspending the license, the applicant does not need to retake any examination and does not need to repay a license fee that was paid before the suspension.

 

Subd. 3.  Reinstatement after voluntary termination.  A licensee who is not an individual may voluntarily terminate a license issued to the person under this chapter.  If a licensee has voluntarily terminated a license under this subdivision, then, in order to have the license reinstated, the person who holds the terminated license must:

 

(1) apply for reinstatement to the commissioner no later than the date that the license would have expired if it had not been terminated;

 

(2) pay a $100 reinstatement application fee and any applicable renewal license fee; and

 

(3) meet all applicable requirements for licensure, except that the applicant does not need to repay a license fee that was paid before the termination.

 

Sec. 9.  [326B.097] PROHIBITION OF TRANSFER. 

 

A licensee shall not transfer or sell any license.

 

Sec. 10.  [326B.098] CONTINUING EDUCATION. 

 

Subdivision 1.  Applicability.  This section applies to seminars offered by the department for the purpose of allowing licensees to meet continuing education requirements for license renewal.

 

Subd. 2.  Rescheduling.  An individual who is registered with the department to attend a seminar may reschedule one time only, to attend the same seminar on a date within one year after the date of the seminar the individual was registered to attend.

 

Subd. 3.  Fees nonrefundable.  All seminar fees paid to the department are nonrefundable except for any overpayment of fees.

 

Sec. 11.  Minnesota Statutes 2008, section 326B.106, subdivision 9, is amended to read:

 

Subd. 9.  Accessibility.  (a) Public buildings.  The code must provide for making public buildings constructed or remodeled after July 1, 1963, accessible to and usable by persons with disabilities, although this does not require the remodeling of public buildings solely to provide accessibility and usability to persons with disabilities when remodeling would not otherwise be undertaken. 


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(b) Leased space.  No agency of the state may lease space for agency operations in a non-state-owned building unless the building satisfies the requirements of the State Building Code for accessibility by persons with disabilities, or is eligible to display the state symbol of accessibility.  This limitation applies to leases of 30 days or more for space of at least 1,000 square feet. 

 

(c) Meetings or conferences.  Meetings or conferences for the public or for state employees which are sponsored in whole or in part by a state agency must be held in buildings that meet the State Building Code requirements relating to accessibility for persons with disabilities.  This subdivision does not apply to any classes, seminars, or training programs offered by the Minnesota State Colleges and Universities or the University of Minnesota.  Meetings or conferences intended for specific individuals none of whom need the accessibility features for persons with disabilities specified in the State Building Code need not comply with this subdivision unless a person with a disability gives reasonable advance notice of an intent to attend the meeting or conference.  When sign language interpreters will be provided, meetings or conference sites must be chosen which allow hearing impaired participants to see their signing clearly. 

 

(d) Exemptions.  The commissioner may grant an exemption from the requirements of paragraphs (b) and (c) in advance if an agency has demonstrated that reasonable efforts were made to secure facilities which complied with those requirements and if the selected facilities are the best available for access for persons with disabilities.  Exemptions shall be granted using criteria developed by the commissioner in consultation with the Council on Disability. 

 

(e) Symbol indicating access.  The wheelchair symbol adopted by Rehabilitation International's Eleventh World Congress is the state symbol indicating buildings, facilities, and grounds which are accessible to and usable by persons with disabilities.  In the interests of uniformity, this symbol is the sole symbol for display in or on all public or private buildings, facilities, and grounds which qualify for its use.  The secretary of state shall obtain the symbol and keep it on file.  No building, facility, or grounds may display the symbol unless it is in compliance with the rules adopted by the commissioner under subdivision 1.  Before any rules are proposed for adoption under this paragraph, the commissioner shall consult with the Council on Disability.  Rules adopted under this paragraph must be enforced in the same way as other accessibility rules of the State Building Code. 

 

(f) Municipal enforcement.  Municipalities which have not adopted the State Building Code may enforce the building code requirements for persons with disabilities by either entering into a joint powers agreement for enforcement with another municipality which has adopted the State Building Code; or contracting for enforcement with an individual certified under section 326B.133, subdivision 3, to enforce the State Building Code. 

 

Sec. 12.  Minnesota Statutes 2008, section 326B.133, subdivision 1, is amended to read:

 

Subdivision 1.  Designation.  Each municipality shall designate a building official to administer the code.  A municipality may designate no more than one building official responsible for code administration defined by each certification category established in rule created by statute or rule.  Two or more municipalities may combine in the designation of a building official for the purpose of administering the provisions of the code within their communities.  In those municipalities for which no building officials have been designated, the state building official may use whichever state employees are necessary to perform the duties of the building official until the municipality makes a temporary or permanent designation.  All costs incurred by virtue of these services rendered by state employees must be borne by the involved municipality and receipts arising from these services must be paid to the commissioner. 

 

Sec. 13.  Minnesota Statutes 2008, section 326B.133, is amended by adding a subdivision to read:

 

Subd. 2a.  Application; renewal; fees; expiration.  (a) An applicant for certification shall submit a completed application on a form approved by the commissioner to the department.  The commissioner shall review applications for compliance with the requirements established by rule.


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(b) Application for initial certification or renewal certification as a building official, building official-limited, or accessibility specialist shall be according to this section and sections 326B.092 to 326B.095.

 

(c) Fees shall be paid to the department according to section 326B.092.

 

(d) Unless revoked or suspended under this chapter, all certifications issued or renewed under this section expire two years from the date of original issuance and every two years thereafter.

 

Sec. 14.  Minnesota Statutes 2008, section 326B.133, subdivision 3, is amended to read:

 

Subd. 3.  Certification criteria.  The commissioner shall by rule establish certification criteria as proof of qualification pursuant to subdivision 2.  The commissioner may: 

 

(1) develop and administer written and practical examinations to determine if a person is qualified pursuant to subdivision 2 to be a building official;

 

(2) accept documentation of successful completion of testing programs developed and administered by nationally recognized testing agencies, as proof of qualification pursuant to subdivision 2; or

 

(3) determine qualifications by satisfactory completion of clause (2) and a mandatory training program developed or approved by the commissioner. 

 

Upon a determination of qualification under clause (1), (2), or (3), the commissioner shall issue a certificate to the building official stating that the official is certified.  Each person applying for examination and certification pursuant to this section shall pay a nonrefundable fee of $70.  The commissioner or a designee may establish categories of certification that will recognize the varying complexities of code enforcement in the municipalities within the state.  The commissioner shall provide educational programs designed to train and assist building officials in carrying out their responsibilities. 

 

Sec. 15.  Minnesota Statutes 2008, section 326B.133, is amended by adding a subdivision to read:

 

Subd. 3a.  Certification categories.  (a) If a municipality has adopted or adopts the State Building Code, the responsibilities for code administration and enforcement are under the authority of its designated building official or the certified building official-limited.

 

(b) Certified building official.  This certification is identified as "certified building official" on the certificate card.  This certification is granted to an individual who has met the certified building official requirements established by rule and passed the written examination prepared by the state.  A person with this certification may serve as the designated building official for any municipality.  For the purposes of calculating fees under section 326B.092, certification as a building official is a master license.

 

(c) Certified building official-limited.  This certification is identified as "certified building official-limited" on the certification card.  This certification is granted to an individual who has met the certified building official-limited requirements established by rule and passed the written examination prepared by the state.  An individual with this certification may perform code administration for one- and two-family dwellings, their accessory structures, and "exempt classes of buildings" as provided in Minnesota Rules, part 1800.5000, of the Board of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience, and Interior Design, and "facilities for persons with physical disabilities" that are governed by the State Building Code.  Subject to the limitations of the building official-limited certification, an individual with this certification may serve as the designated building official for any municipality.  Code administration for all other buildings must be performed by a certified building official as defined in paragraph (b).  A certified building official-limited may conduct inspections for other structures regulated by the State Building Code under the direction of a designated certified building official or the state building official.


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Subject to all other certification requirements, as of January 1, 2012, valid Class I certifications shall be included in the certified building official-limited category upon the next immediate renewal.  For the purposes of calculating fees under section 326B.092, certification as a building official-limited is a journeyman license.

 

(d) Accessibility specialist.  This certification is identified as accessibility specialist on the certification card.  This certification is granted to an individual who has met the "accessibility specialist" requirements established by rule and passed the written examination prepared by the state.  An individual with this classification is limited to the administration of those provisions of the State Building Code that provide access for persons with disabilities.  For the purposes of calculating fees under section 326B.092, certification as an accessibility specialist is a journeyman license.

 

Sec. 16.  Minnesota Statutes 2008, section 326B.133, subdivision 8, is amended to read:

 

Subd. 8.  Continuing education requirements; extension of time.  (a) This subdivision establishes the number of continuing education units required within each two-year certification period.

 

A certified building official shall accumulate 16 continuing education units in any education program that is approved under Minnesota Rules, part 1301.1000.

 

A certified building official-limited shall, in each year of the initial two-year certification period, accumulate eight continuing education units in any education program that is approved under Minnesota Rules, part 1301.1000.  Continuing education units shall be reported annually during the initial two-year certification period by the method established in rule.  A certified building official-limited shall accumulate 16 continuing education units for each two-year certification period thereafter in any education program that is approved under Minnesota Rules, part 1301.1000.

 

An accessibility specialist must accumulate four continuing education units in any of the programs described in Minnesota Rules, part 1301.1000, subpart 1 or 2.  The four units must be for courses relating to building accessibility, plan review, field inspection, or building code administration.

 

Continuing education programs may be approved as established in rule.

 

(b) Subject to sections 326B.101 to 326B.194, the commissioner may by rule establish or approve continuing education programs for certified building officials dealing with matters of building code administration, inspection, and enforcement. 

 

Each person certified as a building official for the state must satisfactorily complete applicable educational programs established or approved by the commissioner to retain renew certification.

 

(c) The state building official may grant an extension of time to comply with continuing education requirements if the certificate holder requesting the extension of time shows cause for the extension.  The request for the extension must be in writing.  For purposes of this section, the certificate holder's current certification effective dates shall remain the same.  The extension does not relieve the certificate holder from complying with the continuing education requirements for the next two-year period.

 

Sec. 17.  Minnesota Statutes 2008, section 326B.133, subdivision 11, is amended to read:

 

Subd. 11.  Failure to renew.  An individual who has failed to make a timely application for renewal of a certificate is not certified and must not serve as the designated building official for any municipality, or a certified building official, a certified building official-limited, or an accessibility specialist until a renewed certificate has been issued by the commissioner. 


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Sec. 18.  Minnesota Statutes 2008, section 326B.16, is amended to read:

 

326B.16 ENFORCEMENT OF REQUIREMENTS FOR DISABLED PERSONS WITH DISABILITIES. 

 

Subdivision 1.  Application.  The State Building Code's requirements for persons with disabilities apply statewide.  A statutory or home rule charter city that does not have in effect an ordinance adopting the State Building Code is responsible for enforcement in the city of the State Building Code's requirements for disabled persons with disabilities.  In all other areas where there is no ordinance in effect adopting the State Building Code, the county is responsible for enforcement of the State Building Code's requirements for disabled persons with disabilities. 

 

Subd. 2.  Municipal enforcement.  Municipalities which have not adopted the State Building Code shall enforce the State Building Code's requirements for persons with disabilities by:  (1) entering into a joint powers agreement for enforcement with another municipality which has adopted the State Building Code; (2) contracting for enforcement with an individual certified under section 326B.133, subdivision 3, to enforce the State Building Code; or (3) hiring or training their own staff.

 

Subd. 3.  Responsibilities.  Municipalities shall fulfill code responsibilities including duties and responsibilities for code administration, plan review, and inspection in accordance with the procedures established in the State Building Code.

 

Subd. 4.  Enforcement by state building official.  If the commissioner determines that a municipality is not properly administering and enforcing the State Building Code's requirements for persons with disabilities, the commissioner may have the administration and enforcement in the involved municipality undertaken by the state building official or by another building official certified by the state.  The commissioner shall notify the affected municipality in writing immediately upon making the determination, and the municipality may challenge the determination as a contested case before the commissioner pursuant to the Administrative Procedure Act.  The commissioner shall charge the fees set by section 326B.153 for the administration and enforcement service rendered.  Any cost to the state arising from the state administration and enforcement of the State Building Code shall be borne by the subject municipality.

 

Sec. 19.  Minnesota Statutes 2008, section 326B.197, is amended to read:

 

326B.197 BOND REQUIRED FOR CERTAIN CONTRACTORS. 

 

(a) A person contracting to do gas, heating, ventilation, cooling, air conditioning, fuel burning, or refrigeration work must give and maintain bond to the state in the amount of $25,000 for all work entered into within the state.  The bond must be for the benefit of persons suffering financial loss by reason of the contractor's failure to comply with the requirements of the State Mechanical Code.  A bond given to the state must be filed with the commissioner of labor and industry and is in lieu of all other bonds to any political subdivision required for work covered by this section.  The bond must be written by a corporate surety licensed to do business in the state.

 

(b) The commissioner of labor and industry may charge each person giving bond under this section an annual a biennial bond filing fee of $15 $100. 

 

Sec. 20.  Minnesota Statutes 2008, section 326B.33, subdivision 18, is amended to read:

 

Subd. 18.  Examination.  In addition to the other requirements described in this section and sections 326B.091 to 326B.098, and except as provided in subdivision 20, as a precondition to issuance of a personal license, each applicant must pass a written or oral examination developed and administered by the commissioner to ensure the competence of each applicant for license.  An oral examination shall be administered only to an applicant who furnishes a written statement from a certified teacher or other professional, trained in the area of reading disabilities


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stating that the applicant has a specific reading disability which would prevent the applicant from performing satisfactorily on a written test.  The oral examination shall be structured so that an applicant who passes the examination will not impair the applicant's own safety or that of others while acting as a licensed individual.  No individual failing an examination may retake it for six months thereafter, but within such six months the individual may take an examination for a lesser grade of license.  Any individual failing to renew a personal license for two years or more after its expiration, and any licensee whose personal license is revoked under this chapter, shall be required to retake the examination before being issued a new license.  An individual whose personal license is revoked under any other chapter is not required to retake the examination before being issued a new license, unless the personal license was revoked two years or more before the commissioner received the completed application for a new license.  A licensee whose personal license is suspended for any reason is not required to retake the examination before the personal license is reinstated, unless the personal license has not been reinstated within two years after the suspension began.

 

An applicant for a personal license shall submit to the commissioner an application and examination fee at the time of application.  Upon approval of the application, the commissioner shall schedule the applicant for the next available examination, which shall be held within 60 days.  The applicant shall be allowed one opportunity to reschedule an examination without being required to submit another application and examination fee.  Additionally, an applicant who fails an examination, or whose application was not approved, shall submit another application and examination fee.

 

Sec. 21.  Minnesota Statutes 2009 Supplement, section 326B.33, subdivision 19, is amended to read:

 

Subd. 19.  License, registration, and renewal fees; expiration.  (a) Unless revoked or suspended under this chapter, all licenses issued or renewed under this section expire on the date specified in this subdivision.  Master licenses expire March 1 of each odd-numbered year after issuance or renewal.  Electrical contractor licenses expire March 1 of each even-numbered year after issuance or renewal.  Technology system contractor licenses expire August 1 of each even-numbered year after issuance or renewal.  All other personal licenses expire two years from the date of original issuance and every two years thereafter.  Registrations of unlicensed individuals expire one year from the date of original issuance and every year thereafter.

 

(b) Fees for application and examination, and for the original issuance and each subsequent renewal, are:

 

(1) For each personal license application and examination:  $35;

 

(2) For original issuance and each subsequent renewal of:

 

Class A Master or master special electrician, including master elevator constructor:  $40 per year;

 

Class B Master:  $25 per year;

 

Power Limited Technician:  $15 per year;

 

Class A Journeyman, Class B Journeyman, Installer, Elevator Constructor, Lineman, or Maintenance Electrician other than master special electrician:  $15 per year;

 

Contractor:  $100 per year;

 

Unlicensed individual registration:  $15 per year.

 

(c) If any new license is issued in accordance with this subdivision for less than two years, the fee for the license shall be prorated on an annual basis.


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(d) A license fee may not be refunded after a license is issued or renewed.  However, if the fee paid for a license was not prorated in accordance with this subdivision, the amount of the overpayment shall be refunded.

 

(e) Any contractor who seeks reissuance of a license after it has been revoked or suspended under this chapter shall submit a reissuance fee of $100 before the license is reinstated.

 

(f) An individual or contractor who fails to renew a license before 30 days after the expiration or registration of the license must submit a late fee equal to one year's license fee in addition to the full renewal fee.  Fees for renewed licenses or registrations are not prorated.  An individual or contractor that fails to renew a license or registration by the expiration date is unlicensed until the license or registration is renewed.

 

(b) For purposes of calculating license fees and renewal license fees required under section 326B.092:

 

(1) the registration of an unlicensed individual under subdivision 12 shall be considered an entry level license;

 

(2) the following licenses shall be considered journeyman licenses:  Class A journeyman electrician, Class B journeyman electrician, Class A installer, Class B installer, elevator constructor, lineman, maintenance electrician, and power limited technician;

 

(3) the following licenses shall be considered master licenses:  Class A master electrician, Class B master electrician, and master elevator constructor; and

 

(4) the following licenses shall be considered business licenses:  Class A electrical contractor, Class B electrical contractor, elevator contractor, and technology systems contractor.

 

(c) For each filing of a certificate of responsible person by an employer, the fee is $100.

 

Sec. 22.  Minnesota Statutes 2008, section 326B.33, subdivision 20, is amended to read:

 

Subd. 20.  Reciprocity.  The commissioner may enter into reciprocity agreements for personal licenses with another state if approved by the board.  Once approved by the board, the commissioner may issue a personal license without requiring the applicant to pass an examination provided the applicant:

 

(a) submits an application under this section;

 

(b) pays the application and examination fee and license fee required under this section 326B.092; and

 

(c) holds a valid comparable license in the state participating in the agreement.

 

Agreements are subject to the following:

 

(1) The parties to the agreement must administer a statewide licensing program that includes examination and qualifying experience or training comparable to Minnesota's.

 

(2) The experience and training requirements under which an individual applicant qualified for examination in the qualifying state must be deemed equal to or greater than required for an applicant making application in Minnesota at the time the applicant acquired the license in the qualifying state.

 

(3) The applicant must have acquired the license in the qualifying state through an examination deemed equivalent to the same class of license examination in Minnesota.  A lesser class of license may be granted where the applicant has acquired a greater class of license in the qualifying state and the applicant otherwise meets the conditions of this subdivision.


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(4) At the time of application, the applicant must hold a valid license in the qualifying state and have held the license continuously for at least one year before making application in Minnesota.

 

(5) An applicant is not eligible for a license under this subdivision if the applicant has failed the same or greater class of license examination in Minnesota, or if the applicant's license of the same or greater class has been revoked or suspended.

 

(6) An applicant who has failed to renew a personal license for two years or more after its expiration is not eligible for a license under this subdivision.

 

Sec. 23.  Minnesota Statutes 2008, section 326B.33, subdivision 21, is amended to read:

 

Subd. 21.  Exemptions from licensing.  (a) An individual who is a maintenance electrician is not required to hold or obtain a license under sections 326B.31 to 326B.399 if: 

 

(1) the individual is engaged in the maintenance and repair of electrical equipment, apparatus, and facilities that are owned or leased by the individual's employer and that are located within the limits of property operated, maintained, and either owned or leased by the individual's employer;

 

(2) the individual is supervised by: 

 

(i) the responsible master electrician for a contractor who has contracted with the individual's employer to provide services for which a contractor's license is required; or

 

(ii) a licensed master electrician, a licensed maintenance electrician, an electrical engineer, or, if the maintenance and repair work is limited to technology circuits or systems work, a licensed power limited technician; and

 

(3) the individual's employer has filed on file with the commissioner a current certificate of responsible person, signed by the responsible master electrician of the contractor, the licensed master electrician, the licensed maintenance electrician, the electrical engineer, or the licensed power limited technician, and stating that the person signing the certificate is responsible for ensuring that the maintenance and repair work performed by the employer's employees complies with the Minnesota Electrical Act and the rules adopted under that act.  The employer must pay a filing fee to file a certificate of responsible person with the commissioner.  The certificate shall expire two years from the date of filing.  In order to maintain a current certificate of responsible person, the employer must resubmit a certificate of responsible person, with a filing fee, no later than two years from the date of the previous submittal.

 

(b) Employees of a licensed electrical or technology systems contractor or other employer where provided with supervision by a master electrician in accordance with subdivision 1, or power limited technician in accordance with subdivision 7, paragraph (a), clause (1), are not required to hold a license under sections 326B.31 to 326B.399 for the planning, laying out, installing, altering, and repairing of technology circuits or systems except planning, laying out, or installing: 

 

(1) in other than residential dwellings, class 2 or class 3 remote control circuits that control circuits or systems other than class 2 or class 3, except circuits that interconnect these systems through communication, alarm, and security systems are exempted from this paragraph;

 

(2) class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing physically unprotected circuits other than class 2 or class 3; or

 

(3) technology circuits or systems in hazardous classified locations as covered by chapter 5 of the National Electrical Code. 


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(c) Companies and their employees that plan, lay out, install, alter, or repair class 2 and class 3 remote control wiring associated with plug or cord and plug connected appliances other than security or fire alarm systems installed in a residential dwelling are not required to hold a license under sections 326B.31 to 326B.399. 

 

(d) Heating, ventilating, air conditioning, and refrigeration contractors and their employees are not required to hold or obtain a license under sections 326B.31 to 326B.399 when performing heating, ventilating, air conditioning, or refrigeration work as described in section 326B.38. 

 

(e) Employees of any electrical, communications, or railway utility, cable communications company as defined in section 238.02, or a telephone company as defined under section 237.01 or its employees, or of any independent contractor performing work on behalf of any such utility, cable communications company, or telephone company, shall not be required to hold a license under sections 326B.31 to 326B.399: 

 

(1) while performing work on installations, materials, or equipment which are owned or leased, and operated and maintained by such utility, cable communications company, or telephone company in the exercise of its utility, antenna, or telephone function, and which

 

(i) are used exclusively for the generation, transformation, distribution, transmission, or metering of electric current, or the operation of railway signals, or the transmission of intelligence and do not have as a principal function the consumption or use of electric current or provided service by or for the benefit of any person other than such utility, cable communications company, or telephone company, and

 

(ii) are generally accessible only to employees of such utility, cable communications company, or telephone company or persons acting under its control or direction, and

 

(iii) are not on the load side of the service point or point of entrance for communication systems;

 

(2) while performing work on installations, materials, or equipment which are a part of the street lighting operations of such utility; or

 

(3) while installing or performing work on outdoor area lights which are directly connected to a utility's distribution system and located upon the utility's distribution poles, and which are generally accessible only to employees of such utility or persons acting under its control or direction. 

 

(f) An owner shall not be required to hold or obtain a license under sections 326B.31 to 326B.399. 

 

Sec. 24.  Minnesota Statutes 2008, section 326B.42, is amended by adding a subdivision to read:

 

Subd. 1a.  Contractor.  "Contractor" means a person who performs or offers to perform any plumbing work, with or without compensation, who is licensed as a contractor by the commissioner.  Contractor includes plumbing contractors and restricted plumbing contractors.

 

Sec. 25.  Minnesota Statutes 2008, section 326B.42, is amended by adding a subdivision to read:

 

Subd. 8.  Plumbing contractor.  "Plumbing contractor" means a licensed contractor whose responsible licensed plumber is a licensed master plumber.

 

Sec. 26.  Minnesota Statutes 2008, section 326B.42, is amended by adding a subdivision to read:

 

Subd. 9.  Responsible licensed plumber.  A contractor's "responsible licensed plumber" means the licensed master plumber or licensed restricted master plumber designated in writing by the contractor in the contractor's license application, or in another manner acceptable to the commissioner, as the individual responsible for the contractor's compliance with sections 326B.41 to 326B.49, all rules adopted under these sections and sections 326B.50 to 326B.59, and all orders issued under section 326B.082.


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Sec. 27.  Minnesota Statutes 2008, section 326B.42, is amended by adding a subdivision to read:

 

Subd. 10.  Restricted plumbing contractor.  "Restricted plumbing contractor" means a licensed contractor whose responsible licensed plumber is a licensed restricted master plumber.

 

Sec. 28.  Minnesota Statutes 2008, section 326B.44, is amended to read:

 

326B.44 LOCAL REGULATIONS. 

 

Any of the following entities may, by ordinance, adopt local regulations providing for plumbing permits, approval of plans and specifications, and inspections of plumbing, which regulations are not in conflict with the plumbing code:  any city having a system of waterworks or sewerage, regardless of population; any town having a population of 5,000 or more according to the last federal census, exclusive of any statutory cities located therein; and the Metropolitan Airports Commission.  No such entity shall prohibit plumbers plumbing contractors licensed by the commissioner from engaging in or working at the business of plumbing, except cities and statutory cities which, prior to April 21, 1933, by ordinance required the licensing of plumbers.  No such entity shall require any person who engages in the business of plumbing to post a bond as a prerequisite for engaging in the business of plumbing, except the bond to the state required under section 326B.46 and except any performance bond required under a contract with the person for the performance of plumbing work for the entity.  No such entity shall require any person who engages in the business of plumbing to maintain public liability insurance as a prerequisite for engaging in the business of plumbing, except the insurance required under section 326B.46 and except any public liability insurance required under a contract with the person for the performance of plumbing work for the entity.  No city or town may require a license for persons performing building sewer or water service installation who have completed pipe laying training as prescribed by the commissioner of labor and industry.  Any city by ordinance may prescribe regulations, reasonable standards, and inspections and grant permits to any person engaged in the business of installing water softeners, who is not licensed as a master plumber or journeyman plumber contractor by the commissioner, to connect water softening and water filtering equipment to private residence water distribution systems, where provision has been previously made therefor and openings left for that purpose or by use of cold water connections to a domestic water heater; where it is not necessary to rearrange, make any extension or alteration of, or addition to any pipe, fixture or plumbing connected with the water system except to connect the water softener, and provided the connections so made comply with minimum standards prescribed by the Plumbing Board.

 

Sec. 29.  Minnesota Statutes 2008, section 326B.46, as amended by Laws 2009, chapter 78, article 5, section 14, and chapter 109, section 13, is amended to read:

 

326B.46 LICENSING, BOND AND INSURANCE. 

 

Subdivision 1.  License required.  (a) No person individual shall engage in or work at the business of a master plumber, restricted master plumber, journeyman plumber, and restricted journeyman plumber unless licensed to do so by the state commissioner.  A license is not required for individuals performing building sewer or water service installation who have completed pipe laying training as prescribed by the commissioner of labor and industry.  A master plumber may also work as a journeyman plumber, a restricted journeyman plumber, and a restricted master plumber.  A journeyman plumber may also work as a restricted journeyman plumber.  Anyone not so licensed may do plumbing work which complies with the provisions of the minimum standards prescribed by the Plumbing Board on premises or that part of premises owned and actually occupied by the worker as a residence, unless otherwise forbidden to do so by a local ordinance.

 

(b) No person shall engage in the business of planning, superintending, or installing plumbing or shall install plumbing in connection with the dealing in and selling of plumbing material and supplies unless at all times a licensed master plumber, or in cities and towns with a population of fewer than 5,000 according to the last federal census, a restricted master plumber, who shall be responsible for proper installation, is in charge of the plumbing work of the person, firm, or corporation.


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(c) Except as provided in subdivision 2, no person shall perform or offer to perform plumbing work with or without compensation unless the person obtains a contractor's license.  A contractor's license does not of itself qualify its holder to perform the plumbing work authorized by holding a master, journeyman, restricted master, or restricted journeyman license.

 

Subd. 1a.  Exemptions from licensing.  (a) An individual without a contractor license may do plumbing work on the individual's residence in accordance with subdivision 1, paragraph (a).

 

(b) An individual who is an employee working on the maintenance and repair of plumbing equipment, apparatus, or facilities owned or leased by the individual's employer and which is within the limits of property owned or leased, and operated or maintained by the individual's employer, shall not be required to maintain a contractor license as long as the employer has on file with the commissioner a current certificate of responsible person.  The certificate must be signed by the responsible master plumber or, in an area of the state that is not a city or town with a population of more than 5,000 according to the last federal census, restricted master plumber, and must state that the person signing the certificate is responsible for ensuring that the maintenance and repair work performed by the employer's employees comply with sections 326B.41 to 326B.49, all rules adopted under those sections and sections 326B.50 to 326B.59, and all orders issued under section 326B.082.  The employer must pay a filing fee to file a certificate of responsible person with the commissioner.  The certificate shall expire two years from the date of filing.  In order to maintain a current certificate of responsible person, the employer must resubmit a certificate of responsible person, with a filing fee, no later than two years from the date of the previous submittal.  The filing of the certificate of responsible person does not exempt any employee of the employer from the requirements of this chapter regarding individual licensing as a plumber or registration as a plumber's apprentice.

 

(c) If a contractor employs a licensed plumber, the licensed plumber does not need a separate contractor license to perform plumbing work on behalf of the employer within the scope of the licensed plumber's license.

 

Subd. 1b.  Employment of master plumber or restricted master plumber.  (a) Each contractor must designate a responsible licensed plumber, who shall be responsible for the performance of all plumbing work in accordance with sections 326B.41 to 326B.49, all rules adopted under these sections and sections 326B.50 to 326B.59, and all orders issued under section 326B.082.  A plumbing contractor's responsible licensed plumber must be a master plumber.  A restricted plumbing contractor's responsible licensed plumber must be a master plumber or a restricted master plumber.  A plumbing contractor license authorizes the contractor to offer to perform and, through licensed and registered individuals, to perform plumbing work in all areas of the state.  A restricted plumbing contractor license authorizes the contractor to offer to perform and, through licensed and registered individuals, to perform plumbing work in all areas of the state except in cities and towns with a population of more than 5,000 according to the last federal census.

 

(b) If the contractor is an individual or sole proprietorship, the responsible licensed plumber must be the individual, proprietor, or managing employee.  If the contractor is a partnership, the responsible licensed plumber must be a general partner or managing employee.  If the contractor is a limited liability company, the responsible licensed plumber must be a chief manager or managing employee.  If the contractor is a corporation, the responsible licensed plumber must be an officer or managing employee.  If the responsible licensed plumber is a managing employee, the responsible licensed plumber must be actively engaged in performing plumbing work on behalf of the contractor, and cannot be employed in any capacity as a plumber for any other contractor.  An individual may be the responsible licensed plumber for only one contractor.

 

(c) All applications and renewals for contractor licenses shall include a verified statement that the applicant or licensee has complied with this subdivision.

 

Subd. 2.  Bond; insurance.  Any person contracting to do plumbing work must give As a condition of licensing, each contractor shall give and maintain bond to the state in the amount of at least $25,000 for (1) all plumbing work entered into within the state or (2) all plumbing work and subsurface sewage treatment work entered into within the


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state.  If the bond is for both plumbing work and subsurface sewage treatment work, the bond must comply with the requirements of this section and section 115.56, subdivision 2, paragraph (e).  The bond shall be for the benefit of persons injured or suffering financial loss by reason of failure to comply with the requirements of the State Plumbing Code and, if the bond is for both plumbing work and subsurface sewage treatment work, financial loss by reason of failure to comply with the requirements of sections 115.55 and 115.56.  The bond shall be filed with the commissioner and shall be written by a corporate surety licensed to do business in the state. 

 

In addition, each applicant for a master plumber license or restricted master plumber license, or renewal thereof, shall provide evidence of as a condition of licensing, each contractor shall have and maintain in effect public liability insurance, including products liability insurance with limits of at least $50,000 per person and $100,000 per occurrence and property damage insurance with limits of at least $10,000.  The insurance shall be written by an insurer licensed to do business in the state of Minnesota and each licensed master plumber shall maintain on file with the commissioner a certificate evidencing the insurance providing that the insurance shall not be canceled without the insurer first giving 15 days written notice to the commissioner.  The term of the insurance shall be concurrent with the term of the license.

 

Subd. 3.  Bond and insurance exemption.  If a master plumber or restricted master plumber who is in compliance with the bond and insurance requirements of subdivision 2, employs a licensed plumber, the employee plumber shall not be required to meet the bond and insurance requirements of subdivision 2.  An individual who is an employee working on the maintenance and repair of plumbing equipment, apparatus, or facilities owned or leased by the individual's employer and which is within the limits of property owned or leased, and operated or maintained by the individual's employer, shall not be required to meet the bond and insurance requirements of subdivision 2. 

 

Subd. 4.  Fee.  (a) Each person giving bond to the state under subdivision 2 shall pay the department a bond registration fee of $40 for one year or $80 for two years.

 

(b) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the bond registration from one year to two years so that the expiration of bond registration corresponds with the expiration of the license issued under section 326B.475 or 326B.49, subdivision 1.

 

Subd. 5.  Exterior connections.  Persons licensed as manufactured home installers under chapter 327B are not required to be licensed under sections 326B.42 to 326B.49 when connecting the exterior building drain sewer outlets to the aboveground building sewer system and when connecting the exterior water line to the aboveground water system to the manufactured home as described in National Manufactured Housing Construction and Safety Standards Act of 1974, United States Code, title 42, section 5401 et seq.  No additional licensure, bond, or insurance related to the scope of work permitted under this subdivision may be required of a licensed manufactured home installer by any unit of government. 

 

Subd. 6.  Well contractor exempt from licensing and bond; conditions.  No license, registration, or bond under sections 326B.42 to 326B.49 is required of a well contractor or a limited well/boring contractor who is licensed and bonded under section 103I.525 or 103I.531 and is engaged in the work or business of installing (1) water service pipe from a well to a pressure tank or a frost-free water hydrant with an antisiphon device which is located entirely outside of a structure requiring potable water, or (2) a temporary shut-off valve on a well water service pipe.  For the purposes of this subdivision, "temporary" means a time period not to exceed six months.  This subdivision expires one year after the date of enactment.

 

Sec. 30.  Minnesota Statutes 2008, section 326B.47, is amended to read:

 

326B.47 PLUMBER'S APPRENTICES. 

 

Subdivision 1.  Registration; supervision; records.  (a) All plumber's apprentices must be registered.  To be a registered plumber's apprentice, an individual must either:


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(1) be an individual employed in the trade of plumbing under an apprenticeship agreement approved by the department under Minnesota Rules, part 5200.0300; or

 

(2) be an unlicensed individual registered with the commissioner under subdivision 3.

 

(b) A plumber's apprentice is authorized to assist in the installation of plumbing only while under the direct supervision of a master, restricted master, journeyman, or restricted journeyman plumber.  The master, restricted master, journeyman, or restricted journeyman plumber is responsible for ensuring that all plumbing work performed by the plumber's apprentice complies with the plumbing code.  The supervising master, restricted master, journeyman, or restricted journeyman must be licensed and must be employed by the same employer as the plumber's apprentice.  Licensed individuals shall not permit plumber's apprentices to perform plumbing work except under the direct supervision of an individual actually licensed to perform such work.  Plumber's apprentices shall not supervise the performance of plumbing work or make assignments of plumbing work to unlicensed individuals.

 

(c) Contractors employing plumber's apprentices to perform plumbing work shall maintain records establishing compliance with this subdivision that shall identify all plumber's apprentices performing plumbing work, and shall permit the department to examine and copy all such records.

 

Subd. 2.  Journeyman exam.  A plumber's apprentice who has completed four years of practical plumbing experience is eligible to take the journeyman plumbing examination.  Up to 24 months of practical plumbing experience prior to becoming a plumber's apprentice may be applied to the four-year experience requirement.  However, none of this practical plumbing experience may be applied if the individual did not have any practical plumbing experience in the 12-month period immediately prior to becoming a plumber's apprentice.  The Plumbing Board may adopt rules to evaluate whether the individual's past practical plumbing experience is applicable in preparing for the journeyman's examination.  If two years after completing the training the individual has not taken the examination, the four years of experience shall be forfeited.

 

The commissioner may allow an extension of the two-year period for taking the exam for cases of hardship or other appropriate circumstances.

 

Subd. 3.  Registration, rules, applications, renewals, and fees.  An unlicensed individual may register by completing and submitting to the commissioner a registration an application form provided by the commissioner, with all fees required by section 326B.092.  A completed registration application form must state the date the individual began training, the individual's age, schooling, previous experience, and employer, and other information required by the commissioner.  The board may prescribe rules, not inconsistent with this section, for the registration of unlicensed individuals.  Each applicant for initial registration as a plumber's apprentice shall pay the department an application fee of $25.  Applications for initial registration may be submitted at any time.  Registration must be renewed annually and shall be for the period from July 1 of each year to June 30 of the following year.  Applications for renewal registration must be received by the commissioner by June 30 of each registration period on forms provided by the commissioner, and must be accompanied by a fee of $25.  An application for renewal registration received on or after July 1 in any year but no more than three months after expiration of the previously issued registration must pay the past due renewal fee plus a late fee of $25.  No applications for renewal registration will be accepted more than three months after expiration of the previously issued registration.

 

Sec. 31.  Minnesota Statutes 2008, section 326B.475, subdivision 2, is amended to read:

 

Subd. 2.  Use of license.  A restricted master plumber and restricted journeyman plumber may engage in the plumbing trade in all areas of the state except in cities and towns with a population of more than 5,000 according to the last federal census.


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Sec. 32.  Minnesota Statutes 2009 Supplement, section 326B.475, subdivision 4, is amended to read:

 

Subd. 4.  Renewal; use period for license.  (a) A restricted master plumber and restricted journeyman plumber license must be renewed for as long as that licensee engages in the plumbing trade.  Notwithstanding section 326B.094, failure to renew a restricted master plumber and restricted journeyman plumber license within 12 months after the expiration date will result in permanent forfeiture of the restricted master plumber and restricted journeyman plumber license.

 

(b) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of restricted master plumber and restricted journeyman plumber licenses from one year to two years.  By June 30, 2011, all restricted master plumber and restricted journeyman plumber licenses shall be two-year licenses.

 

Sec. 33.  Minnesota Statutes 2009 Supplement, section 326B.49, subdivision 1, is amended to read:

 

Subdivision 1.  Application, examination, and license fees.  (a) Applications for master and journeyman plumber's license licenses shall be made to the commissioner, with fee all fees required by section 326B.092.  Unless the applicant is entitled to a renewal, the applicant shall be licensed by the commissioner only after passing a satisfactory examination developed and administered by the commissioner, based upon rules adopted by the Plumbing Board, showing fitness.  Examination fees for both journeyman and master plumbers shall be $50 for each examination.  Upon being notified of having successfully passed the examination for original license the applicant shall submit an application, with the license fee herein provided.  The license fee for each initial master plumber's license shall be $240.  The license fee for each initial journeyman plumber's license shall be $110.

 

(b) All initial master and journeyman plumber's licenses shall be effective for more than one calendar year and shall expire on December 31 of the year after the year in which the application is made.  The license fee for each renewal master plumber's license shall be $120 for one year or $240 for two years.  The license fee for each renewal journeyman plumber's license shall be $55 for one year or $110 for two years.  All master plumber's licenses shall expire on December 31 of each even-numbered year after issuance or renewal.  The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of master and journeyman plumber's licenses from one year to two years.  By June 30, 2011, all renewed master and journeyman plumber's licenses shall be two-year licenses.

 

(c) Any licensee who does not renew a license within two years after the license expires is no longer eligible for renewal.  Such an individual must retake and pass the examination before a new license will be issued.  A journeyman or master plumber who submits a license renewal application after the time specified in rule but within two years after the license expired must pay all past due renewal fees plus a late fee of $25.  Applications for contractor licenses shall be made to the commissioner, with all fees required by section 326B.092.  All contractor licenses shall expire on December 31 of each odd-numbered year after issuance or renewal.

 

(d) For purposes of calculating license fees and renewal license fees required under section 326B.092:

 

(1) the following licenses shall be considered business licenses:  plumbing contractor and restricted plumbing contractor;

 

(2) the following licenses shall be considered master licenses:  master plumber and restricted master plumber;

 

(3) the following licenses shall be considered journeyman licenses:  journeyman plumber and restricted journeyman plumber; and


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(4) the registration of a plumber's apprentice under section 326B.47, subdivision 3, shall be considered an entry level license.

 

(e) For each filing of a certificate of responsible person by an employer, the fee is $100.

 

Sec. 34.  Minnesota Statutes 2008, section 326B.50, is amended by adding a subdivision to read:

 

Subd. 1a.  Responsible licensed master.  "Responsible licensed master" means the licensed water conditioning master or licensed master plumber designated in writing by the water conditioning contractor in the water conditioning contractor's license application, or in another manner acceptable to the commissioner, as the individual responsible for the water conditioning contractor's compliance with sections 326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code, and all orders issued under section 326B.082. 

 

Sec. 35.  Minnesota Statutes 2008, section 326B.50, is amended by adding a subdivision to read:

 

Subd. 2a.  Water conditioning contractor.  "Water conditioning contractor" means a person who performs or offers to perform any water conditioning installation or water conditioning servicing, with or without compensation, who is licensed as a water conditioning contractor by the commissioner.

 

Sec. 36.  Minnesota Statutes 2008, section 326B.50, is amended by adding a subdivision to read:

 

Subd. 3a.  Water conditioning journeyman.  "Water conditioning journeyman" means an individual, other than a water conditioning master, who has demonstrated practical knowledge of water conditioning installation and servicing, and who is licensed by the commissioner as a water conditioning journeyman.

 

Sec. 37.  Minnesota Statutes 2008, section 326B.50, is amended by adding a subdivision to read:

 

Subd. 3b.  Water conditioning master.  "Water conditioning master" means an individual who has demonstrated skill in planning, superintending, installing, and servicing water conditioning installations, and who is licensed by the commissioner as a water conditioning master.

 

Sec. 38.  Minnesota Statutes 2008, section 326B.54, is amended to read:

 

326B.54 VIOLATIONS TO BE REPORTED TO COMMISSIONER. 

 

Such local authority as may be designated by any such ordinance for the issuance of such water conditioning installation and servicing permits and approval of such plans shall report to the commissioner persistent or willful violations of the same and any incompetence of a licensed water conditioning contractor, licensed water conditioning master, or licensed water conditioning installer journeyman observed by the local authority.

 

Sec. 39.  Minnesota Statutes 2008, section 326B.55, as amended by Laws 2010, chapter 183, section 13, is amended to read:

 

326B.55 LICENSING IN CERTAIN CITIES; QUALIFICATIONS; RULES. 

 

Subdivision 1.  Licensing.  (a) Except as provided in paragraph (d), no individual shall perform water conditioning installation or water conditioning servicing unless licensed by the commissioner as a master plumber, journeyman plumber, water conditioning master, or water conditioning journeyman, or, in all areas of the state except in cities and towns with a population of more than 5,000 according to the last federal census, as a restricted master plumber or restricted journeyman plumber.


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(b) Except as provided in paragraph (e), no person shall perform or offer to perform water conditioning installation or water conditioning servicing with or without compensation unless the person obtains a water conditioning contractor's license.  A water conditioning contractor's license does not of itself qualify its holder to perform the water conditioning installation or water conditioning servicing authorized by holding a water conditioning master or water conditioning journeyman license.

 

(c) Except as provided in paragraph (d), no person shall engage in or work at the business of water conditioning installation or servicing anywhere in the state unless (1) at all times an individual licensed as a master plumber or water conditioning contractor master by the commissioner shall be, who is responsible for the proper installation and servicing, is in charge of the water conditioning installation and servicing work of such person, and (2) all installations, other than.

 

If a water conditioning contractor employs a licensed master, restricted master, journeyman or restricted journeyman plumber, or a licensed water conditioning master or journeyman, then the licensed individual does not need a separate water conditioning contractor license to perform water conditioning installation or servicing on behalf of the employer within the scope of the individual's plumber license.

 

(d) No water conditioning contractor, water conditioning master, or water conditioning journeyman license is required:

 

(1) for exchanges of portable water conditioning equipment, are performed by a licensed water conditioning contractor or licensed water conditioning installer.  Any individual not so licensed may; or

 

(2) for an individual to perform water conditioning work that complies with the minimum standards prescribed by the Plumbing Board on premises or that part of premises owned and occupied by the worker individual as a residence, unless otherwise prohibited by a local ordinance.  The scope of work that a master plumber, restricted master plumber, journeyman plumber, or restricted journeyman plumber is authorized to perform as an employee of a licensed water conditioning contractor shall be limited to the scope of work that the licensed water conditioning contractor is licensed to perform.

 

Subd. 2.  Qualifications for licensing.  (a) A water conditioning contractor master license shall be issued only to an individual who has demonstrated skill in planning, superintending, and servicing water conditioning installations, and has successfully passed the examination for water conditioning contractors masters.  A water conditioning installer journeyman license shall only be issued to an individual other than a water conditioning contractor master who has demonstrated practical knowledge of water conditioning installation, and has successfully passed the examination for water conditioning installers journeymen.  A water conditioning installer journeyman must successfully pass the examination for water conditioning contractors masters before being licensed as a water conditioning contractor master.

 

(b) Each water conditioning contractor must designate a responsible licensed master plumber or a responsible licensed water conditioning master, who shall be responsible for the performance of all water conditioning installation and servicing in accordance with the requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to 326B.59, the Minnesota Plumbing Code, and all orders issued under section 326B.082.  If the water conditioning contractor is an individual or sole proprietorship, the responsible licensed master must be the individual, proprietor, or managing employee.  If the water conditioning contractor is a partnership, the responsible licensed master must be a general partner or managing employee.  If the water conditioning contractor is a limited liability company, the responsible licensed master must be a chief manager or managing employee.  If the water conditioning contractor is a corporation, the responsible licensed master must be an officer or managing employee.  If the responsible licensed master is a managing employee, the responsible licensed master must be actively engaged in performing water conditioning work on behalf of the water conditioning contractor and cannot be employed in any capacity as a water conditioning master or water conditioning journeyman for any other water conditioning contractor.  An individual must not be the responsible licensed master for more than one water conditioning contractor.


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(c) All applications and renewals for water conditioning contractor licenses shall include a verified statement that the applicant or licensee has complied with paragraph (b).

 

(d) Each application and renewal for a water conditioning master license, water conditioning journeyman license, or a water conditioning contractor license shall be accompanied by all fees required by section 326B.092.

 

Subd. 3.  Commissioner.  The commissioner shall:

 

(1) license water conditioning contractors, water conditioning masters, and installers water conditioning journeymen; and

 

(2) collect an examination fee from each examinee for a license as a water conditioning contractor and an examination fee from each examinee for a license as a water conditioning installer in an amount set forth in section 326B.58 the fees required by section 326B.092. 

 

Subd. 4.  Plumber's apprentices.  (a) A plumber's apprentice who is registered under section 326B.47 is authorized to assist in water conditioning installation and water conditioning servicing only while under the direct supervision of a master plumber, journeyman plumber, water conditioning master, or water conditioning journeyman.  The master or journeyman is responsible for ensuring that all water conditioning work performed by the plumber's apprentice complies with the plumbing code and rules adopted under sections 326B.50 to 326B.59.  The supervising master or journeyman must be licensed and must be employed by the same employer as the plumber's apprentice.  Licensed individuals shall not permit plumber's apprentices to perform water conditioning work except under the direct supervision of an individual actually licensed to perform such work.  Plumber's apprentices shall not supervise the performance of plumbing work or make assignments of plumbing work to unlicensed individuals.

 

(b) Water conditioning contractors employing plumber's apprentices to perform water conditioning work shall maintain records establishing compliance with this subdivision that shall identify all plumber's apprentices performing water conditioning work, and shall permit the department to examine and copy all such records.

 

Sec. 40.  Minnesota Statutes 2008, section 326B.56, as amended by Laws 2009, chapter 78, article 5, section 18, is amended to read:

 

326B.56 ALTERNATIVE STATE BONDING AND INSURANCE REGULATION. 

 

Subdivision 1.  Bonds.  (a) An applicant for a water conditioning contractor or installer license or renewal thereof who is required by any political subdivision to give a bond to obtain or maintain the license, may comply with any political subdivision bonding requirement by giving As a condition of licensing, each water conditioning contractor shall give and maintain a bond to the state as described in paragraph (b).  No applicant for a water conditioning contractor or installer license who maintains the bond under paragraph (b) shall be otherwise required to meet the bond requirements of any political subdivision.

 

(b) Each bond given to the state under this subdivision shall be in the total sum of $3,000 conditioned upon the faithful and lawful performance of all water conditioning contracting or installing work installation or servicing done within the state.  The bond shall be for the benefit of persons suffering injuries or damages due to the work.  The bond shall be filed with the commissioner and shall be written by a corporate surety licensed to do business in this state.  The bond must remain in effect at all times while the application is pending and while the license is in effect.

 

Subd. 2.  Insurance.  (a) Each applicant for a water conditioning contractor or installer license or renewal thereof who is required by any political subdivision to maintain insurance to obtain or maintain the license may comply with any political subdivision's insurance requirement by maintaining As a condition of licensing, each


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water conditioning contractor shall have and maintain in effect the insurance described in paragraph (b).  No applicant for a water conditioning contractor or installer license who maintains the insurance described in paragraph (b) shall be otherwise required to meet the insurance requirements of any political subdivision.

 

(b) The insurance shall provide coverage, including products liability coverage, for all damages in connection with licensed work for which the licensee is liable, with personal damage limits of at least $50,000 per person and $100,000 per occurrence and property damage insurance with limits of at least $10,000.  The insurance shall be written by an insurer licensed to do business in this state and a certificate evidencing the insurance shall be filed with the commissioner.  The insurance must remain in effect at all times while the application is pending and while the license is in effect.  The insurance shall not be canceled without the insurer first giving 15 days' written notice to the commissioner.

 

Subd. 3.  Bond and insurance exemption.  A water conditioning contractor or installer who is an employee of a water conditioning contractor or installer, including an employee engaged in the maintenance and repair of water conditioning equipment, apparatus, or facilities owned, leased and operated, or maintained by the employer, is not required to meet the bond and insurance requirements of subdivisions 1 and 2 or of any political subdivision.

 

Subd. 4.  Fee.  (a) The commissioner shall collect a $40 bond registration fee for one year or $80 for two years from each applicant for issuance or renewal of a water conditioning contractor or installer license who elects to proceed under subdivisions 1 and 2.

 

(b) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the bond registration from one year to two years so that the expiration of bond registration corresponds with the expiration of the license issued under section 326B.55.

 

Sec. 41.  Minnesota Statutes 2009 Supplement, section 326B.58, is amended to read:

 

326B.58 FEES; RENEWAL. 

 

(a) Examination fees for both water conditioning contractors and water conditioning installers shall be $50 for each examination.  Each initial water conditioning contractor and installer master and water conditioning journeyman license shall be effective for more than one calendar year and shall expire on December 31 of the year after the year in which the application is made.  The license fee for each initial water conditioning contractor's license shall be $140, except that the license fee shall be $105 if the application is submitted during the last three months of the calendar year.  The license fee for each renewal water conditioning contractor's license shall be $70 for one year or $140 for two years.  The license fee for each initial water conditioning installer license shall be $70, except that the license fee shall be $52.50 if the application is submitted during the last three months of the calendar year.  The license fee for each renewal water conditioning installer license shall be $35 for one year or $70 for two years.

 

(b) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of water conditioning contractor and installer master and journeyman licenses from one year to two years.  By June 30, 2011, all renewed water conditioning contractor and installer licenses shall be two-year licenses.  The commissioner Plumbing Board may by rule prescribe for the expiration and renewal of licenses.

 

(c) Any licensee who does not renew a license within two years after the license expires is no longer eligible for renewal.  Such an individual must retake and pass the examination before a new license will be issued.  A water conditioning contractor or water conditioning installer who submits a license renewal application after the time specified in rule but within two years after the license expired must pay all past due renewal fees plus a late fee of $25 All water conditioning contractor licenses shall expire on December 31 of the year after issuance or renewal.


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(d) For purposes of calculating license fees and renewal fees required under section 326B.092:

 

(1) a water conditioning journeyman license shall be considered a journeyman license;

 

(2) a water conditioning master license shall be considered a master license; and

 

(3) a water conditioning contractor license shall be considered a business license.

 

Sec. 42.  Minnesota Statutes 2008, section 326B.805, subdivision 6, is amended to read:

 

Subd. 6.  Exemptions.  The license requirement does not apply to:

 

(1) an employee of a licensee performing work for the licensee;

 

(2) a material person, manufacturer, or retailer furnishing finished products, materials, or articles of merchandise who does not install or attach the items;

 

(3) an owner of residential real estate who builds or improves any structure on residential real estate, if the building or improving is performed by the owner's bona fide employees or by individual owners personally.  This exemption does not apply to an owner who constructs or improves property for purposes of speculation if the building or improving is performed by the owner's bona fide employees or by individual owners personally.  A residential building contractor or residential remodeler will be presumed to be building or improving for purposes of speculation if the contractor or remodeler constructs or improves more than one property within any 24‑month period;

 

(4) an architect or professional engineer engaging in professional practice as defined by section 326.02, subdivisions 2 and 3;

 

(5) a person whose total gross annual receipts for performing specialty skills for which licensure would be required under this section do not exceed $15,000;

 

(6) a mechanical contractor;

 

(7) a plumber, electrician, or other person whose profession is otherwise subject to statewide licensing, when engaged in the activity which is the subject of that licensure;

 

(8) specialty contractors who provide only one special skill as defined in section 326B.802;

 

(9) a school district, or a technical college governed under chapter 136F; and

 

(10) Habitat for Humanity and Builders Outreach Foundation, and their individual volunteers when engaged in activities on their behalf.

 

To qualify for the exemption in clause (5), a person must obtain a certificate of exemption from licensure from the commissioner.  A certificate of exemption will be issued upon the applicant's filing with the commissioner, an affidavit stating that the applicant does not expect to exceed $15,000 in gross annual receipts derived from performing services which require licensure under this section during the calendar year in which the affidavit is received.  For the purposes of calculating fees under section 326B.092, a certificate of exemption is an entry level license.  To renew the exemption in clause (5), the applicant must file an affidavit stating that the applicant did not exceed $15,000 in gross annual receipts during the past calendar year.  If a person, operating under the exemption in clause (5), exceeds $15,000 in gross receipts during any calendar year, the person must immediately surrender the


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exemption certificate of exemption and apply for the appropriate license.  The person must remain licensed until such time as the person's gross annual receipts during a calendar year fall below $15,000.  The person may then apply for an exemption for the next calendar year.

 

Sec. 43.  Minnesota Statutes 2009 Supplement, section 326B.815, subdivision 1, is amended to read:

 

Subdivision 1.  Licensing fee Fees.  (a) The licensing fee for persons licensed pursuant to sections 326B.802 to 326B.885, except for manufactured home installers, is $200 for a two-year period.  The For the purposes of calculating fees under section 326B.092, an initial or renewed residential contractor, residential remodeler, or residential roofer license is a business license.  Notwithstanding section 326B.092, the licensing fee for manufactured home installers under section 327B.041 is $300 for a three-year period.

 

(b) All initial and renewal licenses, except for manufactured home installer licenses, shall be effective for two years and shall expire on March 31 of the year after the year in which the application is made.  The license fee for each renewal of a residential contractor, residential remodeler, or residential roofer license shall be $100 for one year and $200 for two years.

 

(c) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of residential contractor, residential remodeler, and residential roofer licenses from one year to two years.  By June 30, 2011, all renewed residential contractor, residential remodeler, and residential roofer licenses shall be two-year licenses.

 

Sec. 44.  Minnesota Statutes 2008, section 326B.83, subdivision 1, is amended to read:

 

Subdivision 1.  Form.  (a) An applicant for a license under sections 326B.802 to 326B.885 must submit an application, under oath and accompanied by the license fee fees required by section 326B.815 326B.092, on a form prescribed by the commissioner.  Within 30 business days of receiving all required information, the commissioner must act on the license request.

 

(b) If one of the categories in the application does not apply, the applicant must identify the category and state the reason the category does not apply.  The commissioner may refuse to issue a license if the application is not complete or contains unsatisfactory information. 

 

Sec. 45.  Minnesota Statutes 2008, section 326B.83, subdivision 3, is amended to read:

 

Subd. 3.  Examination.  (a) Each qualifying person must satisfactorily complete pass a written examination for the type of license requested.  The commissioner may establish the examination qualifications, including related education experience and education, the examination procedure, and the examination for each licensing group.  The examination must include at a minimum the following areas:

 

(1) appropriate knowledge of technical terms commonly used and the knowledge of reference materials and code books to be used for technical information; and

 

(2) understanding of the general principles of business management and other pertinent state laws.

 

(b) Each examination must be designed for the specified type of license requested. 

 

(c) An individual's passing examination results expire two years from the examination date.  An individual who passes the examination but does not choose to apply to act as a qualifying person for a licensee within two years from the examination date, must, upon application provide:


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(1) passing examination results within two years from the date of application; or

 

(2) proof that the person has fulfilled the continuing education requirements in section 326B.821 in the manner required for a qualifying person of a licensee for each license period after the expiration of the examination results. 

 

Sec. 46.  Minnesota Statutes 2008, section 326B.83, subdivision 6, is amended to read:

 

Subd. 6.  License.  A nonresident of Minnesota may be licensed as a residential building contractor, residential remodeler, residential roofer, or manufactured home installer upon compliance with all the provisions of sections 326B.092 to 326B.098 and 326B.802 to 326B.885.

 

Sec. 47.  Minnesota Statutes 2009 Supplement, section 326B.86, subdivision 1, is amended to read:

 

Subdivision 1.  Bond.  (a) Licensed manufactured home installers and licensed residential roofers must post a biennial surety bond in the name of the licensee with the commissioner, conditioned that the applicant shall faithfully perform the duties and in all things comply with all laws, ordinances, and rules pertaining to the license or permit applied for and all contracts entered into.  The biennial bond must be continuous and maintained for so long as the licensee remains licensed.  The aggregate liability of the surety on the bond to any and all persons, regardless of the number of claims made against the bond, may not exceed the amount of the bond.  The bond may be canceled as to future liability by the surety upon 30 days' written notice mailed to the commissioner by regular mail.

 

(b) A licensed residential roofer must post a bond of at least $15,000.

 

(c) A licensed manufactured home installer must post a bond of at least $2,500.

 

Bonds issued under sections 326B.802 to 326B.885 are not state bonds or contracts for purposes of sections 8.05 and 16C.05, subdivision 2.

 

Sec. 48.  Minnesota Statutes 2008, section 326B.865, is amended to read:

 

326B.865 SIGN CONTRACTOR; BOND. 

 

(a) A sign contractor may post a compliance bond with the commissioner, conditioned that the sign contractor shall faithfully perform duties and comply with laws, ordinances, rules, and contracts entered into for the installation of signs.  The bond must be renewed annually biennially and maintained for so long as determined by the commissioner.  The aggregate liability of the surety on the bond to any and all persons, regardless of the number of claims made against the bond, may not exceed the annual amount of the bond.  The bond may be canceled as to future liability by the surety upon 30 days' written notice mailed to the commissioner by United States mail.

 

(b) The amount of the bond shall be $8,000.  The bond may be drawn upon only by a local unit of government that requires sign contractors to post a compliance bond.  The bond is in lieu of any compliance bond required by a local unit of government.

 

(c) For purposes of this section, "sign" means a device, structure, fixture, or placard using graphics, symbols, or written copy that is erected on the premises of an establishment including the name of the establishment or identifying the merchandise, services, activities, or entertainment available on the premises.

 

Sec. 49.  Minnesota Statutes 2008, section 326B.921, subdivision 2, is amended to read:

 

Subd. 2.  High pressure pipefitting business license.  Before obtaining a permit for high pressure piping work, a person must obtain or utilize a business with a high pressure piping business license. 


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A person must have at all times as a full-time employee at least one individual holding a contracting high pressure pipefitter competency license.  Only full-time employees who hold contracting high pressure pipefitter licenses are authorized to obtain high pressure piping permits in the name of the business.  The contracting high pressure pipefitter competency license holder can be the employee of only one high pressure piping business at a time.  An application for a high pressure piping business license shall include a verified statement that the applicant or licensee has complied with this subdivision.

 

To retain its business license without reapplication, a person holding a high pressure piping business license that ceases to employ an individual holding a contracting high pressure pipefitter competency license shall have 60 days from the last day of employment of its previous contracting pipefitter competency license holder to employ another license holder.  The department must be notified no later than five days after the last day of employment of the previous license holder. 

 

No high pressure pipefitting work may be performed during any period when the high pressure pipefitting business does not have a contracting high pressure pipefitter competency license holder on staff.  If a license holder is not employed within 60 days after the last day of employment of the previous license holder, the pipefitting business license shall lapse. 

 

The board shall prescribe by rule procedures for application for and issuance of business licenses. 

 

Sec. 50.  Minnesota Statutes 2008, section 326B.921, subdivision 4, is amended to read:

 

Subd. 4.  Registration with commissioner.  An unlicensed individual may register to assist in the practical construction and installation of high pressure piping and appurtenances while in the employ of a licensed high pressure piping business by completing and submitting to the commissioner a registration form provided by the commissioner, with all fees required by section 326B.092.  The board may prescribe rules, not inconsistent with this section, for the registration of unlicensed individuals. 

 

An unlicensed individual applying for initial registration shall pay the department an application fee of $50.  Applications for initial registration may be submitted at any time.  Registration must be renewed annually and shall be valid for one calendar year beginning January 1.  Applications for renewal registration must be submitted to the commissioner before December 31 of each registration period on forms provided by the commissioner, and must be accompanied by a fee of $50.  There shall be no refund of fees paid. 

 

Sec. 51.  Minnesota Statutes 2008, section 326B.921, subdivision 7, is amended to read:

 

Subd. 7.  License fee, registration, and renewal fees.  The department shall charge the following license fees: 

 

(a) application for journeyman high pressure pipefitter competency license, $120;

 

(b) renewal of journeyman high pressure pipefitter competency license, $80;

 

(c) application for contracting high pressure pipefitter competency license, $270;

 

(d) renewal of contracting high pressure pipefitter competency license, $240;

 

(e) application for high pressure piping business license, $450;

 

(f) application to inactivate a contracting high pressure pipefitter competency license or inactivate a journeyman high pressure pipefitter competency license, $40; and


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(g) renewal of an inactive contracting high pressure pipefitter competency license or inactive journeyman high pressure pipefitter competency license, $40. 

 

If an application for renewal of an active or inactive journeyman high pressure pipefitter competency license or active or inactive contracting high pressure pipefitter competency license is received by the department after the date of expiration of the license, a $30 late renewal fee shall be added to the license renewal fee. 

 

Payment must accompany the application for a license or renewal of a license.  There shall be no refund of fees paid. 

 

For purposes of calculating license, registration, and renewal fees required under section 326B.092:

 

(1) the registration of an unlicensed individual under subdivision 4 is an entry level license;

 

(2) a journeyman high pressure pipefitter license is a journeyman license;

 

(3) a contracting high pressure pipefitter license is a master license; and

 

(4) a high pressure piping business license is a business license.

 

Sec. 52.  Minnesota Statutes 2008, section 326B.922, is amended to read:

 

326B.922 LICENSE APPLICATION AND RENEWAL. 

 

(a) Application for a contracting high pressure pipefitter competency or, a journeyman high pressure pipefitter competency, or a high pressure piping business license shall be made to the department, with all fees required by section 326B.092.

 

(b) The applicant for a contracting high pressure pipefitter or a journeyman high pressure pipefitter license shall be licensed only after passing an examination developed and administered by the department in accordance with rules adopted by the board.  A competency license issued by the department shall expire on December 31 of each year.  A renewal application must be received by the department within one year after expiration of the competency license.  A license that has been expired for more than one year cannot be renewed, and can only be reissued if the applicant submits a new application for the competency license, pays a new application fee, and retakes and passes the applicable license examination. 

 

(c) All initial contracting high pressure pipefitter licenses, journeyman high pressure pipefitter licenses, and high pressure piping business licenses are effective for more than one calendar year and expire on December 31 of the year after the year in which the application is made.  The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of contracting high pressure pipefitter, journeyman high pressure pipefitter, and high pressure piping business licenses from one year to two years.  By June 30, 2012, all such licenses shall be two-year licenses.

 

Sec. 53.  Minnesota Statutes 2009 Supplement, section 326B.94, subdivision 4, is amended to read:

 

Subd. 4.  Examinations, licensing.  Every individual that operates a boat must hold a current master's license issued by the commissioner, unless the individual holds a valid, current charter boat captain's license issued by the United States Coast Guard.  The commissioner shall develop and administer an examination for all masters of boats carrying passengers for hire on the inland waters of the state as to their qualifications and fitness.  If found qualified and competent to perform their duties as a master of a boat carrying passengers for hire, they shall be issued a license authorizing them to act as such on the inland waters of the state.  All initial master's licenses shall be for two


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years.  The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of master's licenses from one year to two years.  By June 30, 2011, all renewed master's licenses shall be two-year licenses.  Fees for the original issue and renewal of the license authorized under this section shall be pursuant to section 326B.986, subdivision 2 326B.092.

 

Sec. 54.  Minnesota Statutes 2008, section 326B.978, subdivision 2, is amended to read:

 

Subd. 2.  Applications.  Any individual who desires an engineer's license shall submit an application on a written or electronic form prescribed by the commissioner, at least 15 days before the requested exam date.  If the commissioner approves the applicant for examination, the applicant may take the examination on one occasion within one year from the date the commissioner receives the application with all fees required by section 326B.092. 

 

Sec. 55.  Minnesota Statutes 2008, section 326B.978, is amended by adding a subdivision to read:

 

Subd. 19.  Applicability.  This section shall not apply to traction or hobby boiler engineer's licenses or provisional licenses.

 

Sec. 56.  Minnesota Statutes 2009 Supplement, section 326B.986, subdivision 5, is amended to read:

 

Subd. 5.  Boiler engineer license fees.  (a) For the following licenses, the nonrefundable license and application fee is:

 

(1) chief engineer's license, $70;

 

(2) first class engineer's license, $70;

 

(3) second class engineer's license, $70;

 

(4) special engineer's license, $40;

 

(5) traction or hobby boiler engineer's license, $50; and

 

(6) provisional license, $50.

 

(b) An engineer's license, except a provisional license, may be renewed upon application and payment of a renewal fee of $20 for one year or $40 for two years.  If the renewal fee is paid later than 30 days after expiration, then a late fee of $15 will be added to the renewal fee.

 

(a) For purposes of calculating license fees and renewal license fees required under section 326B.092:

 

(1) the boiler special engineer license is an entry level license;

 

(2) the following licenses are journeyman licenses:  first class engineer, Grade A; first class engineer, Grade B; first class engineer, Grade C; second class engineer, Grade A; second class engineer, Grade B; second class engineer, Grade C; and provisional license; and

 

(3) the following licenses are master licenses:  boiler chief engineer, Grade A; boiler chief engineer, Grade B; boiler chief engineer, Grade C; boiler commissioner inspector; and traction or hobby boiler engineer.


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(b) Notwithstanding section 326B.092, subdivision 7, paragraph (a), the license duration for steam traction and hobby engineer licenses are one year only for the purpose of calculating license fees under section 326B.092, subdivision 7, paragraph (b).

 

Sec. 57.  Minnesota Statutes 2008, section 327.31, subdivision 17, is amended to read:

 

Subd. 17.  Installation.  "Installation" of a manufactured home means assembly installation or reinstallation, at the site of occupancy, of all portions of a manufactured home, connection of the manufactured home to existing utility connections and installation of support and/or anchoring systems.

 

Sec. 58.  Minnesota Statutes 2008, section 327.31, is amended by adding a subdivision to read:

 

Subd. 21.  Used manufactured home.  "Used manufactured home" means a home being offered for sale not less than 24 months after the first purchaser took legal ownership or possession of the home.

 

Sec. 59.  Minnesota Statutes 2008, section 327.31, is amended by adding a subdivision to read:

 

Subd. 22.  Seller.  "Seller" means either the homeowner, manufactured home retailer or dealer, broker, or limited dealer or retailer.

 

Sec. 60.  Minnesota Statutes 2008, section 327.32, subdivision 1, is amended to read:

 

Subdivision 1.  Requirement; new manufactured homes.  No person shall sell, or offer for sale, in this state, any new manufactured home manufactured after July 1, 1972, or manufacture any manufactured home in this state or install for occupancy any manufactured home manufactured after July 1, 1972, in any manufactured home park in this state unless the manufactured home complies with the Manufactured Home Building Code and:  bears a label as required by the secretary. 

 

(a) bears a seal issued by the commissioner, and is, whenever possible, accompanied by a certificate by the manufacturer or dealer, both evidencing that it complies with the Manufactured Home Building Code; or

 

(b) if manufactured after June 14, 1976, bears a label as required by the secretary. 

 

Sec. 61.  Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

 

Subd. 1a.  Requirement; used manufactured homes.  No person shall sell or offer for sale in this state any used manufactured home manufactured after June 14, 1976, or install for occupancy any used manufactured home manufactured after June 14, 1976, unless the used manufactured home complies with the Notice of Compliance Form as provided in this subdivision.  If manufactured after June 14, 1976, the home must bear a label as required by the secretary.  The Notice of Compliance Form shall be signed by the seller and purchaser indicating which party is responsible for either making or paying for any necessary corrections prior to the sale and transferring ownership of the manufactured home.

 

The Notice of Compliance Form shall be substantially in the following form:

 

"Notice of Compliance Form as required in Minnesota Statutes, section 327.32, subdivision 1.

 

This notice must be completed and signed by the purchaser(s) and the seller(s) of the used manufactured home described in the purchase agreement and on the bottom of this notice before the parties transfer ownership of a used manufactured home constructed after June 14, 1976.


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Electric ranges and clothes dryers must have required four-conductor cords and plugs.

 

Complies ..........                                                                                                    Correction required ..........

 

Initialed by Responsible Party:  Buyer ..........                                                 Seller ..........

 

Solid fuel-burning fireplaces or stoves must be listed for use in manufactured homes, Code of Federal Regulations, title 24, section 3280.709(g), and installed correctly in accordance with their listing or standards (i.e., chimney, doors, hearth, combustion, or intake, etc., Code of Federal Regulations, title 24, section 3280.709(g)).

 

Complies ..........                                                                                                    Correction required ..........

 

Initialed by Responsible Party:  Buyer ..........                                                 Seller ..........

 

Gas water heaters and furnaces must be listed for manufactured home use, Code of Federal Regulations, title 24, section 3280.709(a) and (d)(1) and (2), and installed correctly, in accordance with their listing or standards.

 

Complies ..........                                                                                                    Correction required ..........

 

Initialed by Responsible Party:  Buyer ..........                                                 Seller ..........

 

Smoke alarms are required to be installed and operational in accordance with Code of Federal Regulations, title 24, section 3280.208.

 

Complies ..........                                                                                                    Correction required ..........

 

Initialed by Responsible Party:  Buyer ..........                                                 Seller ..........

 

Carbon monoxide alarms or CO detectors that are approved and operational are required to be installed within ten feet of each room lawfully used for sleeping purposes.

 

Complies ..........                                                                                                    Correction required ..........

 

Initialed by Responsible Party:  Buyer ..........                                                 Seller ..........

 

Egress windows are required in every bedroom with at least one operable window with a net clear opening of 20 inches wide and 24 inches high, five square feet in area, with the bottom of windows opening no more than 36 inches above the floor.  Locks, latches, operating handles, tabs, or other operational devices shall not be located more than 54 inches above the finished floor.

 

Complies ..........                                                                                                    Correction required ..........

 

Initialed by Responsible Party:  Buyer ..........                                                 Seller ..........

 

The furnace compartment of the home is required to have interior finish with a flame spread rating not exceeding 25 feet, as specified in the 1976 United States Department of Housing and Urban Development Code governing manufactured housing construction.

 

Complies ..........                                                                                                    Correction required ..........

 

Initialed by Responsible Party:  Buyer ..........                                                 Seller ..........


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The water heater enclosure in this home is required to have interior finish with a flame spread rating not exceeding 25 feet, as specified in the 1976 United States Department of Housing and Urban Development Code governing manufactured housing construction.

 

Complies ..........                                                                                                    Correction required ..........

 

Initialed by Responsible Party:  Buyer ..........                                                 Seller ..........

 

The home complies with the snowload and heat zone requirements for the state of Minnesota as indicated by the data plate. 

 

Complies ..........                                                                                                    Correction required ..........

 

Initialed by Responsible Party:  Buyer ..........                                                 Seller ..........

 

The parties to this agreement have initialed all required sections and agree by their signature to complete any necessary corrections prior to the sale or transfer of ownership of the home described below as listed in the purchase agreement.  The state of Minnesota or a local building official has the authority to inspect the home in the manner described in Minnesota Statutes, section 327.33, prior to or after the sale to ensure compliance was properly executed as provided under the Manufactured Home Building Code.

 

Signature of Purchaser(s) of Home                                                                                                 

 

..............................date..............................                                            ..............................date..............................

 

...................................................................                                             ...................................................................

Print name as appears on purchase agreement                             Print name as appears on purchase agreement

 

Signature of Seller(s) of Home                                                         

 

..............................date..............................                                            ..............................date..............................

 

...................................................................                                             ...................................................................

Print name and license number, if applicable                                Print name and license number, if applicable

 

(Street address of home at time of sale)                                      

 

...............................................................................................................................................

 

(City/State/Zip)..................................................................................................................

 

Name of manufacturer of home...................................................................................

 

Model and Year.................................................................................................................

 

Serial Number................................................................................................................... "

 

Sec. 62.  Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

 

Subd. 1b.  Alternative design plan.  An alternative frost-free design slab that is submitted to the department, stamped by a licensed professional engineer or architect, and is in compliance with either the federal installation standards in effect at the date of manufacture or the Minnesota State Building Code, when applicable, shall be issued a permit by the department within ten days. 


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Sec. 63.  Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

 

Subd. 1c.  Manufacturer's installation instructions; new home.  All new single-section manufactured homes and new multisection manufactured homes shall be installed in compliance with either the manufacturer's installation instructions in effect at the date of manufacture or, when applicable, the Minnesota State Building Code.

 

Sec. 64.  Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

 

Subd. 1d.  Manufacturer's installation instructions; used multisection homes.  All used multisection manufactured homes shall be installed in compliance with the manufacturer's installation instructions in effect at the date of manufacture, approved addenda or, when applicable, the Minnesota State Building Code.

 

Sec. 65.  Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

 

Subd. 1e.  Reinstallation requirements for single-section used manufactured homes.  (a) All single-section used manufactured homes reinstalled less than 24 months from the date of installation by the first purchaser must be reinstalled in compliance with subdivision 1c.  All single-section used manufactured homes reinstalled more than 24 months from the date of installation by the first purchaser may be reinstalled without a frost-protected foundation if the home is reinstalled in compliance with Minnesota Rules, chapter 1350, for above frost-line installations and the notice requirement of subdivision 1f is complied with by the seller and the purchaser of the single-section used manufactured home.

 

(b) The installer shall affix an installation seal issued by the department to the outside of the home as required by the Minnesota State Building Code.  The certificate of installation issued by the installer of record shall clearly state that the home has been reinstalled with an above frost-line foundation.  Fees for inspection of a reinstallation and for issuance of reinstallation seals shall follow the requirements of sections 326B.802 to 326B.885.  Fees for review of plans, specifications, and on-site inspections shall be those as specified in section 326B.153, subdivision 1, paragraph (c).  Whenever an installation certificate for an above frost-line installation is issued to a single-section used manufactured home being listed for sale, the purchase agreement must disclose that the home is installed on a nonfrost-protected foundation and recommend that the purchaser have the home inspected to determine the effects of frost on the home.

 

Sec. 66.  Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

 

Subd. 1f.  Notice requirement.  The seller of the single-section used manufactured home being reinstalled under subdivision 1e shall provide the following notice to the purchaser and secure signatures of all parties to the purchase agreement on or before signing a purchase agreement prior to submitting an application for an installation certificate.  Whenever a current owner of a manufactured home reinstalls the manufactured home under subdivision 1e, the current owner is not required to comply with the notice requirement under this subdivision.  The notice shall be in at least 14-point font, except the heading, "WHICH MAY VOID WARRANTY," must be in capital letters, in 20-point font.  The notice must be printed on a separate sheet of paper in a color different than the paper on which the purchase agreement is printed.  The notice becomes a part of the purchase agreement and shall be substantially in the following form:

 

"Notice of Reinstalling of a Single-Section Used Manufactured Home Above Frost-Line;

 

WHICH MAY VOID WARRANTY

 

It is recommended that the single-section used manufactured home being reinstalled follow the instructions in the manufacturer's installation manual.  By signing this notice, the purchaser(s) are acknowledging they have elected to use footings placed above the local frost line in accordance with the Minnesota State Building Code.


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The seller has explained the differences between the manufacturer's installation instructions and the installation system selected by the purchaser(s) with respect to possible effects of frost on the manufactured home.  

 

The purchaser(s) acknowledge by signing this notice that there is no manufacturer's original warranty remaining on the home and recognize that any other extended or ancillary warranty could be adversely affected if any applicable warranty stipulates that the home be installed in accordance with the manufacturer's installation manual to remain effective.

 

After the reinstallation of the manufactured home, it is highly recommended that the purchaser(s) have a licensed manufactured home installer recheck the home's installation for any releveling needs or anchoring system adjustments each freeze-thaw cycle. 

 

The purchaser(s) of the used manufactured home described below that is being reinstalled acknowledge they have read this notice and have been advised to contact the manufacturer of the home and/or the Department of Labor and Industry if they desire additional information before signing this notice.  It is the intent of this notice to inform the purchaser(s) that the purchaser(s) elected not to use a frost-protected foundation system for the reinstallation of the manufactured home as originally required by the home's installation manual.

 

Plain language notice.

 

I understand that because this home will be installed with footings placed above the local frost line, this home may be subject to adverse effects from frost heave that may damage this home.  Purchaser(s) initials:  .......

 

I understand that the installation of this home with footings placed above the local frost line could affect my ability to obtain a mortgage or mortgage insurance on this home.  Purchaser(s) initials:  .......

 

I understand that the installation of this home with footings placed above the local frost line could void my warranty on the home if any warranty is still in place on this home.  Purchaser(s) initials:  .......

 

Signature of Purchaser(s)                                                                            

 

..............................date..............................                                                      ..............................date..............................

 

...................................................................                                                       ...................................................................

Print name                                                                                                      Print name

 

(Street address of location where manufactured home is being reinstalled)

 

.........................................................................................................................................

 

(City/State/Zip)...........................................................................................................

 

Name of manufacturer of home.............................................................................

 

Model and year...........................................................................................................

 

Serial number..............................................................................................................

 

Name of licensed installer and license number or homeowner responsible for the installation of the home as described above.


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Installer name:...................................................................................................

 

License number:................................................................................................"

 

Sec. 67.  Minnesota Statutes 2008, section 327.34, subdivision 1, is amended to read:

 

Subdivision 1.  Generally.  It shall be a misdemeanor for any person,

 

(a) to sell, lease, or offer to sell or lease, any manufactured home manufactured after July 1, 1972 June 14, 1976, which does not comply with the Manufactured Home Building Code or which does not bear a seal or label as required by sections 327.31 to 327.34, unless the action is subject to the provisions of section 327.35;

 

(b) to affix a seal or label, or cause a seal or label to be affixed, to any manufactured home which does not comply with the Manufactured Home Building Code unless the action is subject to the provisions of section 327.35;

 

(c) to alter a manufactured home manufactured after July 1, 1972 June 14, 1976, in a manner prohibited by sections 327.31 to 327.34; or

 

(d) to fail to correct a Manufactured Home Building Code violation in a manufactured home manufactured after July 1, 1972 June 14, 1976, which is owned, manufactured, or sold by that person, within 40 days of being ordered to do so in writing by an authorized representative of the commissioner, unless the correction is subject to the provisions of section 327.35; or.

 

(e) to interfere with, obstruct, or hinder any authorized representative of the commissioner in the performance of duties relating to manufactured homes manufactured after July 1, 1972, and prior to June 15, 1976.

 

Sec. 68.  Minnesota Statutes 2008, section 327B.04, subdivision 2, is amended to read:

 

Subd. 2.  Subagency licenses.  Any dealer who has a place of business at more than one location shall designate one location as its principal place of business, one name as its principal name, and all other established places of business as subagencies.  A subagency license shall be required for each subagency.  Subagency license renewal must coincide with the principal license date.  No dealer shall do business as a dealer under any other name than the name on its license.

 

Sec. 69.  Minnesota Statutes 2009 Supplement, section 327B.04, subdivision 7, is amended to read:

 

Subd. 7.  Licenses; when granted renewal.  In addition to the requirements of this section, each application for a license or license renewal must be accompanied by a fee in an amount established by subdivision 7a all applicable fees required by section 326B.092.  The fees shall be set in an amount which over the fiscal biennium will produce revenues approximately equal to the expenses which the commissioner expects to incur during that fiscal biennium while administering and enforcing sections 327B.01 to 327B.12.  The commissioner shall grant or deny a license application or a renewal application within 60 days of its filing.  If the license is granted, the commissioner shall license the applicant as a dealer or manufacturer for the remainder of the licensure period.  Upon application by the licensee, the commissioner shall renew the license for a two-year period, if:

 

(1) the renewal application satisfies the requirements of subdivisions 3 and 4;

 

(2) the renewal applicant has made all listings, registrations, notices and reports required by the commissioner during the preceding licensure period; and


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(3) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to 327B.12 and all taxes, arrearages, and penalties owed to the state.

 

Sec. 70.  Minnesota Statutes 2009 Supplement, section 327B.04, subdivision 7a, is amended to read:

 

Subd. 7a.  Fees.  (a) Fees for licenses issued pursuant to this section are as follows:  shall be calculated pursuant to section 326B.092.

 

(1) initial dealer license for principal location, $400.  Fee is not refundable;

 

(2) initial dealer license for subagency location, $80;

 

(3) dealer license biennial renewal, principal location, $400; dealer subagency location biennial renewal, $160.  Subagency license renewal must coincide with the principal license date;

 

(4) initial limited dealer license, $200;

 

(5) change of bonding company, $10;

 

(6) reinstatement of bond after cancellation notice has been received, $10;

 

(7) checks returned without payment, $15; and

 

(8) change of address, $10.

 

(b) All initial limited dealer licenses shall be effective for more than one calendar year and shall expire on December 31 of the year after the year in which the application is made.

 

(c) The license fee for each renewed limited dealer license shall be $100 for one year and $200 for two years.  For the purposes of calculating fees under section 326B.092, any license issued under this section is a business license, except that a subagency license is a master license.  The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of limited dealer licenses from one year to two years.  By June 30, 2011, all renewed limited dealer licenses shall be two-year licenses.

 

(d) All fees are not refundable.

 

Sec. 71.  Minnesota Statutes 2009 Supplement, section 327B.04, subdivision 8, is amended to read:

 

Subd. 8.  Limited dealer's license.  The commissioner shall issue a limited dealer's license to an owner of a manufactured home park authorizing the licensee as principal only to engage in the sale, offering for sale, soliciting, or advertising the sale of used manufactured homes located in the owned manufactured home park.  The licensee must be the title holder of the homes and may engage in no more than ten sales during each year of the two-year licensure period.  An owner may, upon payment of the applicable fee and compliance with this subdivision, obtain a separate license for each owned manufactured home park and is entitled to sell up to 20 homes per license period provided that only one limited dealer license may be issued for each park.  The license shall be issued after:

 

(1) receipt of an application on forms provided by the commissioner containing the following information:

 

(i) the identity of the applicant;

 

(ii) the name under which the applicant will be licensed and do business in this state;


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(iii) the name and address of the owned manufactured home park, including a copy of the park license, serving as the basis for the issuance of the license;

 

(iv) the name, home, and business address of the applicant;

 

(v) the name, address, and telephone number of one individual that is designated by the applicant to receive all communications and cooperate with all inspections and investigations of the commissioner pertaining to the sale of manufactured homes in the manufactured home park owned by the applicant;

 

(vi) whether the applicant or its designated individual has been convicted of a crime within the previous ten years that is either related directly to the business for which the license is sought or involved fraud, misrepresentation or misuse of funds, or has suffered a judgment in a civil action involving fraud, misrepresentation, or conversion within the previous five years or has had any government license or permit suspended or revoked as a result of an action brought by a federal or state governmental agency in this or any other state within the last five years; and

 

(vii) the applicant's qualifications and business history, including whether the applicant or its designated individual has ever been adjudged bankrupt or insolvent, or has any unsatisfied court judgments outstanding against it or them;

 

(2) payment of the license fee established by subdivision 7a; and

 

(3) provision of a surety bond in the amount of $5,000.  A separate surety bond must be provided for each limited license.

 

The applicant need not comply with section 327B.04, subdivision 4, paragraph (e).  The holding of a limited dealer's license does not satisfy the requirement contained in section 327B.04, subdivision 4, paragraph (e), for the licensee or salespersons with respect to obtaining a dealer license.  The commissioner may, upon application for a renewal of a license, require only a verification that copies of sales documents have been retained and payment of the renewal fee fees established by subdivision 7a section 326B.092.  "Sales documents" mean only the safety feature disclosure form defined in section 327C.07, subdivision 3a, title of the home, financing agreements, and purchase agreements.

 

The license holder shall, upon request of the commissioner, make available for inspection during business hours sales documents required to be retained under this subdivision.

 

Sec. 72.  Minnesota Statutes 2009 Supplement, section 327B.041, is amended to read:

 

327B.041 MANUFACTURED HOME INSTALLERS. 

 

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and the requirements of sections 326B.802 to 326B.885, except for the following:

 

(1) manufactured home installers are not subject to the continuing education requirements of section 326B.821, but are subject to the continuing education requirements established in rules adopted under section 327B.10;

 

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured home installers shall be satisfied by successful completion of a written examination administered and developed specifically for the examination of manufactured home installers.  The examination must be administered and developed by the commissioner.  The commissioner and the state building official shall seek advice on the grading, monitoring, and updating of examinations from the Minnesota Manufactured Housing Association;


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(3) a local government unit may not place a surcharge on a license fee, and may not charge a separate fee to installers;

 

(4) a dealer or distributor who does not install or repair manufactured homes is exempt from licensure under sections 326B.802 to 326B.885;

 

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply; and

 

(6) manufactured home installers are not subject to the contractor recovery fund in section 326B.89.

 

(b) The commissioner may waive all or part of the requirements for licensure as a manufactured home installer for any individual who holds an unexpired license or certificate issued by any other state or other United States jurisdiction if the licensing requirements of that jurisdiction meet or exceed the corresponding licensing requirements of the department and the individual complies with section 326B.092, subdivisions 1 and 3 to 7.  For the purposes of calculating fees under section 326B.092, licensure as a manufactured home installer is a business license.

 

Sec. 73.  WATER-FREE URINALS. 

 

The Plumbing Board shall have expedited rulemaking authority provided under section 14.389 for expedited rules regarding water-free urinals that meet the Minnesota Plumbing Board standards.  This authority expires December 31, 2010.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 74.  REVISOR'S INSTRUCTION. 

 

In Minnesota Rules, the revisor of statutes shall change all references to Minnesota Rules, part 1350.8300, to Minnesota Statutes, section 327B.04.

 

EFFECTIVE DATE.  This section is effective August 1, 2010.

 

Sec. 75.  REPEALER. 

 

(a) Minnesota Statutes 2008, sections 326B.133, subdivisions 9 and 10; 326B.37, subdivision 13; 326B.475, subdivisions 5 and 6; 326B.56, subdivision 3; 326B.885, subdivisions 3 and 4; 326B.976; 327.32, subdivision 4; and 327C.07, subdivisions 3a and 8, are repealed.

 

(b) Minnesota Statutes 2009 Supplement, sections 326B.56, subdivision 4; and 326B.986, subdivision 2, are repealed.

 

(c) Minnesota Rules, parts 1301.0500; 1301.0900; 1301.1100, subparts 2, 3, and 4; 1350.7200, subpart 3; and 1350.8000, subpart 2, are repealed.

 

EFFECTIVE DATE.  Paragraphs (a) to (c) are effective January 1, 2012, except that the repeal of Minnesota Statutes, sections 327.32, subdivision 4, and 327C.07, subdivisions 3a and 8, are effective July 1, 2010.

 

Sec. 76.  EFFECTIVE DATE. 

 

Sections 3 to 10, 12 to 17, and 19 to 56 are effective January 1, 2012.


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ARTICLE 4

 

MINNESOTA S.A.F.E.  MORTGAGE LICENSING ACT OF 2010

 

Section 1.  [58A.01] TITLE. 

 

This chapter may be cited as the "Minnesota Secure and Fair Enforcement for Mortgage Licensing Act of 2010" or "Minnesota S.A.F.E.  Mortgage Licensing Act of 2010."

 

Sec. 2.  [58A.02] DEFINITIONS. 

 

Subdivision 1.  Application.  For purposes of this chapter, the definitions in subdivisions 2 to 15 have the meanings given them.

 

Subd. 2.  Depository institution.  "Depository institution" has the meaning given in United States Code, title 12, section 1813, and includes a credit union.

 

Subd. 3.  Federal banking agencies.  "Federal banking agencies" means the Board of Governors of the Federal Reserve System, the comptroller of the currency, the director of the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.

 

Subd. 4.  Immediate family member.  "Immediate family member" means a spouse, child, sibling, a parent, grandparent, or grandchild.  This includes stepparents, stepchildren, stepsiblings, and adoptive relationships.

 

Subd. 5.  Individual.  "Individual" means a natural person.

 

Subd. 6.  Loan processor or underwriter.  "Loan processor or underwriter" means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing under chapter 58.  For purposes of this subdivision, the term "clerical or support duties" may include after the receipt of an application:

 

(1) the receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan; and

 

(2) communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that the communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.

 

Subd. 7.  Mortgage loan originator.  "Mortgage loan originator":

 

(1) means an individual who for compensation or gain or in the expectation of compensation or gain:

 

(i) takes a residential mortgage loan application; or

 

(ii) offers or negotiates terms of a residential mortgage loan;

 

(2) does not include an individual engaged solely as a loan processor or underwriter except as otherwise provided in section 58A.03, subdivision 3;


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(3) does not include a person or entity that only performs real estate brokerage activities and is licensed or registered according to Minnesota law, unless the person or entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or by an agent of the lender, mortgage broker, or other mortgage loan originator;

 

(4) does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in United States Code, title 11, section 101(53D); and

 

(5) does not include a person who merely assists, without advising, the consumer in locating or understanding a loan application, and does not do anything that would be considered to be acting as a mortgage loan originator under federal or state laws.  This clause is subject to final approval by the United States Department of Housing and Urban Development, and is severable to the extent that the department determines that it is not compliant with federal law.

 

Subd. 8.  Nationwide Mortgage Licensing System and Registry.  "Nationwide Mortgage Licensing System and Registry" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators.

 

Subd. 9.  Nontraditional mortgage product.  "Nontraditional mortgage product" means a mortgage product other than a 30-year fixed rate mortgage loan.

 

Subd. 9a.  Offers or negotiates terms of a residential mortgage loan for compensation or gain.  "Offers or negotiates terms of a residential mortgage loan for compensation or gain" means an individual:

 

(1)(i) presents for acceptance by a borrower or prospective borrower residential mortgage loan terms;

 

(ii) communicates directly or indirectly with a borrower or prospective borrower for the purpose of reaching an understanding about prospective residential mortgage loan terms; or

 

(iii) recommends, refers, or steers a borrower to a particular lender or set of residential mortgage loan terms, in accordance with a duty to or incentive from any person other than the borrower or prospective borrower; and

 

(2) receives or expects to receive payment of money or anything of value in connection with the activities described in clause (1) or as a result of any residential mortgage loan terms entered into as a result of such activities.

 

This subdivision is subject to final approval by the United States Department of Housing and Urban Development, and is severable to the extent that the department determines that it is not compliant with federal law.

 

Subd. 10.  Person.  "Person" means a natural person, corporation, company, limited liability company, partnership, or association.

 

Subd. 11.  Real estate brokerage activity.  "Real estate brokerage activity" means an activity that involves offering or providing real estate brokerage services to the public, including:

 

(1) acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;

 

(2) bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;

 

(3) negotiating, on behalf of a party, a portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property other than in connection with providing financing with respect to the transaction;


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(4) engaging in an activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and

 

(5) offering to engage in any activity, or act in any capacity, described in clause (1), (2), (3), or (4).

 

Subd. 12.  Registered mortgage loan originator.  "Registered mortgage loan originator" means an individual who:

 

(1) meets the definition of mortgage loan originator and is an employee of:

 

(i) a depository institution;

 

(ii) a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; or

 

(iii) an institution regulated by the Farm Credit Administration; and

 

(2) is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.

 

Subd. 13.  Residential mortgage loan.  "Residential mortgage loan" means a loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling, as defined in United States Code, title 15, section 1602(v), or residential real estate upon which a dwelling is constructed or intended to be constructed.

 

Subd. 14.  Residential real estate.  "Residential real estate" means real property located in Minnesota, upon which a dwelling is constructed or is intended to be constructed.

 

Subd. 14a.  Takes a residential mortgage loan application.  "Takes a residential mortgage loan application" means the individual receives a residential mortgage loan application for the purpose of deciding, or influencing or soliciting the decision of another, whether to extend an offer of residential mortgage loan terms to a borrower or prospective borrower, or to accept the terms offered by a borrower or prospective borrower in response to a solicitation, whether the application is received directly or indirectly from the borrower or prospective borrower.  This subdivision is subject to final approval by the United States Department of Housing and Urban Development, and is severable to the extent that the department determines that it is not compliant with federal law.

 

Subd. 15.  Unique identifier.  "Unique identifier" means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry.

 

Sec. 3.  [58A.03] LICENSE AND REGISTRATION REQUIRED. 

 

Subdivision 1.  Generally.  An individual, unless specifically exempted from this chapter under subdivision 2, shall not engage in the business of a mortgage loan originator with respect to a dwelling located in this state without first obtaining and maintaining a license under this chapter.  An individual may not engage in the mortgage loan business unless the individual is employed and supervised by an entity which is either licensed or exempt from licensing under chapter 58.  A licensed mortgage loan originator must register with and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System and Registry.

 

Subd. 2.  Exemptions.  The following are exempt from this chapter:

 

(1) a registered mortgage loan originator, when acting for an entity described in section 58A.02, subdivision 12, clause (1);


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(2) an individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual;

 

(3) an individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence;

 

(4) a licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of the lender, mortgage broker, or other mortgage loan originator; and

 

(5) an employee of a nonprofit organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986, or a local unit of government, that is not otherwise engaged in the mortgage loan business, engaged in the financing of housing for low- and moderate-income households or housing counseling under programs designed specifically for those purposes, to the extent exempted by the commissioner by rule, advisory ruling, or interpretation, after taking into consideration any law, rule, advisory ruling, or interpretation by the United States Department of Housing and Urban Development.

 

Subd. 3.  Independent contractor loan processors or underwriters.  A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless the independent contractor loan processor or underwriter obtains and maintains a license under subdivision 1.  An independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System and Registry.

 

EFFECTIVE DATE.  In order to facilitate an orderly transition to licensing and minimize disruption in the mortgage marketplace, the effective date for subdivision 1 is July 31, 2010, or a later date approved by the Secretary of the U.S.  Department of Housing and Urban Development, under the authority granted in Public Law 110-289, section 1508(a).

 

Sec. 4.  [58A.04] STATE LICENSE AND REGISTRATION APPLICATION AND ISSUANCE. 

 

Subdivision 1.  Application form.  An applicant for a license shall apply in a form as prescribed by the commissioner.  The form must contain content as set forth by rule, instruction, or procedure of the commissioner and may be changed or updated as necessary by the commissioner in order to carry out the purposes of this chapter.

 

Subd. 2.  Commissioner may establish relationships or contracts.  In order to fulfill the purposes of this chapter, the commissioner is authorized to establish relationships or contracts with the Nationwide Mortgage Licensing System and Registry or other entities designated by the Nationwide Mortgage Licensing System and Registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this chapter.

 

Subd. 3.  Waive or modify requirements.  For the purpose of participating in the Nationwide Mortgage Licensing System and Registry, the commissioner is authorized to waive or modify, in whole or in part, by rule or order, any or all of the requirements of this chapter and to establish new requirements as reasonably necessary to participate in the Nationwide Mortgage Licensing System and Registry.

 

Subd. 4.  Background checks.  In connection with an application for licensing as a mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide Mortgage Licensing System and Registry information concerning the applicant's identity, including:

 

(1) fingerprints for submission to the Federal Bureau of Investigation, and a governmental agency or entity authorized to receive the information for a state, national, and international criminal history background check; and


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(2) personal history and experience in a form prescribed by the Nationwide Mortgage Licensing System and Registry, including the submission of authorization for the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:

 

(i) an independent credit report obtained from a consumer reporting agency described in United States Code, title 15, section 1681a(p); and

 

(ii) information related to administrative, civil, or criminal findings by a governmental jurisdiction.

 

Subd. 5.  Agent for purposes of requesting and distributing criminal information.  For the purposes of this section and in order to reduce the points of contact which the Federal Bureau of Investigation may have to maintain for purposes of subdivision 4, clauses (1) and (2), the commissioner may use the Nationwide Mortgage Licensing System and Registry as a channeling agent for requesting information from and distributing information to the Department of Justice or any governmental agency.

 

Subd. 6.  Agent for purposes of requesting and distributing noncriminal information.  For the purposes of this section and in order to reduce the points of contact which the commissioner may have to maintain for purposes of subdivision 4, clause (2)(i) and (ii), the commissioner may use the Nationwide Mortgage Licensing System and Registry as a channeling agent for requesting and distributing information to and from any source so directed by the commissioner.

 

Sec. 5.  [58A.045] TERM OF LICENSE AND FEES. 

 

Subdivision 1.  Term.  Licenses for mortgage loan originators issued under this chapter expire on December 31 and are renewable on January 1 of each year after that date.

 

Subd. 2.  Fees.  The following fees must be paid to the commissioner:

 

(1) for a mortgage loan originator license, $90; and

 

(2) for a renewal mortgage loan originator license, $50.

 

Sec. 6.  [58A.05] ISSUANCE OF LICENSE. 

 

The commissioner shall not issue a mortgage loan originator license unless the commissioner finds at a minimum, that:

 

(1) the applicant has never had a mortgage loan originator license revoked in a governmental jurisdiction, except that a subsequent formal vacation of a revocation shall not be deemed a revocation;

 

(2) the applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:

 

(i) during the seven-year period preceding the date of the application for licensing and registration;

 

(ii) at any time preceding the date of application, if the felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering; or

 

(iii) provided that a pardon of a conviction is not a conviction for purposes of this clause;


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(3) the applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this chapter.  For purposes of this chapter, a person has shown that the person is not financially responsible when the person has shown a disregard in the management of the person's own financial condition.  A determination that an individual has not shown financial responsibility may include, but is not limited to:

 

(i) current outstanding judgments, except judgments solely as a result of medical expenses;

 

(ii) current outstanding tax liens or other government liens and filings;

 

(iii) foreclosures within the past three years; and

 

(iv) a pattern of seriously delinquent accounts within the past three years;

 

(4) the applicant has completed the prelicensing education requirement described in section 58A.06;

 

(5) the applicant has passed a written test that meets the test requirement described in section 58A.07; and

 

(6) the applicant has met the surety bond requirement as required under section 58A.13.

 

Sec. 7.  [58A.06] PRELICENSING AND RELICENSING EDUCATION OF LOAN ORIGINATORS. 

 

Subdivision 1.  Minimum educational requirements.  In order to meet the prelicensing education requirement referred to in section 58A.05, clause (4), a person shall complete at least 20 hours of education approved according to subdivision 2, that includes at least:

 

(1) three hours of federal law and regulations;

 

(2) three hours of ethics, which includes instruction on fraud, consumer protection, and fair lending issues; and

 

(3) two hours of training related to lending standards for the nontraditional mortgage product marketplace.

 

Subd. 2.  Approved educational courses.  For purposes of subdivision 1, prelicensing education courses must be reviewed, and approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards.  Review and approval of a prelicensing education course must include review and approval of the course provider.

 

Subd. 3.  Approval of employer and affiliate educational courses.  Nothing in this section precludes a prelicensing education course, as approved by the Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the applicant or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of the employer or entity.

 

Subd. 4.  Venue of education.  Prelicensing education may be offered in a classroom, online, or by any other means approved by the Nationwide Mortgage Licensing System and Registry.

 

Subd. 5.  Reciprocity of education.  The prelicensing education requirements approved by the Nationwide Mortgage Licensing System and Registry in subdivision 1 for a state must be accepted as credit toward completion of prelicensing education requirements in Minnesota.


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Subd. 6.  Relicensing education requirements.  A person previously licensed under this chapter after the effective date of this chapter applying to be licensed again must prove that the person has completed all of the continuing education requirements for the year in which the license was last held.

 

Sec. 8.  [58A.07] TESTING OF LOAN ORIGINATORS. 

 

Subdivision 1.  Generally.  In order to meet the written test requirement referred to in section 58A.05, clause (5), an individual shall pass, in accordance with the standards established under this section, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards.

 

Subd. 2.  Qualified test.  A written test must not be treated as a qualified written test for purposes of subdivision 1 unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including:

 

(1) ethics;

 

(2) federal law and regulation pertaining to mortgage origination;

 

(3) state law and rule pertaining to mortgage origination; and

 

(4) federal and state law and rule, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.

 

Subd. 3.  Testing location.  Northing in this section prohibits a test provider approved by the Nationwide Mortgage Licensing System and Registry from providing a test at the location of the employer of the applicant or the location of a subsidiary or affiliate of the employer of the applicant, or the location of an entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.

 

Subd. 4.  Minimum competence.  (a) An individual is not considered to have passed a qualified written test unless the individual achieves a test score of not less than 75 percent correct answers to questions.

 

(b) An individual may retake a test three consecutive times with each consecutive taking occurring at least 30 days after the preceding test.

 

(c) After failing three consecutive tests, an individual shall wait at least six months before taking the test again.

 

(d) A licensed mortgage loan originator who fails to maintain a valid license for a period of five years or longer shall retake the test, not taking into account any time during which the individual is a registered mortgage loan originator.

 

Sec. 9.  [58A.08] STANDARDS FOR LICENSE RENEWAL. 

 

Subdivision 1.  Generally.  The minimum standards for license renewal for a mortgage loan originator include that the mortgage loan originator:

 

(1) continues to meet the minimum standards for license issuance under section 58A.05;

 

(2) has satisfied the annual continuing education requirements described in section 58A.09; and

 

(3) has paid all required fees for renewal of the license.


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Subd. 2.  Failure to satisfy minimum standards of license renewal.  The license of a mortgage loan originator failing to satisfy the minimum standards for license renewal expires.  The commissioner may adopt procedures for the reinstatement of expired licenses consistent with the standards established by the Nationwide Mortgage Licensing System and Registry.

 

Sec. 10.  [58A.09] CONTINUING EDUCATION FOR MORTGAGE LOAN ORIGINATORS. 

 

Subdivision 1.  Generally.  In order to meet the annual continuing education requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage loan originator shall complete at least eight hours of education approved according to subdivision 2 that includes at least:

 

(1) three hours of federal law and regulations;

 

(2) two hours of ethics, which includes instruction on fraud, consumer protection, and fair lending issues; and

 

(3) two hours of training related to lending standards for the nontraditional mortgage product marketplace.

 

Subd. 2.  Approved educational courses.  For purposes of subdivision 1, continuing education courses must be reviewed and approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards.  Review and approval of a continuing education course must include review and approval of the course provider.

 

Subd. 3.  Approval of employer and affiliate educational courses.  Nothing in this section precludes an education course, as approved by the Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the mortgage loan originator or an entity that is affiliated with the mortgage loan originator by an agency contract, or a subsidiary or affiliate of the employer or entity.

 

Subd. 4.  Venue of education.  Continuing education may be offered either in a classroom, online, or by other means approved by the Nationwide Mortgage Licensing System and Registry.

 

Subd. 5.  Calculation of continuing education credits.  A licensed mortgage loan originator:

 

(1) except for subdivision 9 and section 58A.08, subdivision 2, may only receive credit for a continuing education course in the year in which the course is taken; and

 

(2) may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.

 

Subd. 6.  Instructor credit.  A licensed mortgage loan originator who is an approved instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator's own annual continuing education requirement at the rate of two hours credit for every one hour taught.

 

Subd. 7.  Reciprocity of education.  A person having successfully completed the education requirements approved by the Nationwide Mortgage Licensing System and Registry in subdivision 1 for a state must be accepted as credit toward completion of continuing education requirements in Minnesota.

 

Subd. 8.  Lapse in license.  A licensed mortgage loan originator who subsequently becomes unlicensed must complete the continuing education requirements for the last year in which the license was held before a new or renewed license is issued.


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Subd. 9.  Deficiency.  A person meeting the requirements of section 58A.08, subdivision 1, clauses (1) and (3), may make up a deficiency in continuing education as established by rule of the commissioner.

 

Sec. 11.  [58A.10] AUTHORITY TO REQUIRE LICENSE. 

 

In addition to any other duties imposed upon the commissioner by law, the commissioner shall require mortgage loan originators to be licensed and registered through the Nationwide Mortgage Licensing System and Registry.  In order to carry out this requirement, the commissioner may participate in the Nationwide Mortgage Licensing System and Registry.  For this purpose, the commissioner may establish by rule or order requirements as necessary, including but not limited to:

 

(1) background checks for:

 

(i) criminal history through fingerprint or other databases;

 

(ii) civil or administrative records;

 

(iii) credit history; or

 

(iv) other information as determined necessary by the Nationwide Mortgage Licensing System and Registry;

 

(2) the payment of fees to apply for or renew licenses through the Nationwide Mortgage Licensing System and Registry;

 

(3) the setting or resetting as necessary of renewal or reporting dates; and

 

(4) requirements for amending or surrendering a license or other activities the commissioner considers necessary for participation in the Nationwide Mortgage Licensing System and Registry.

 

Sec. 12.  [58A.11] NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY INFORMATION CHALLENGE PROCESS. 

 

The commissioner shall establish a process that allows mortgage loan originators to challenge information entered into the Nationwide Mortgage Licensing System and Registry by the commissioner.

 

Sec. 13.  [58A.12] ENFORCEMENT AUTHORITIES, VIOLATIONS, AND PENALTIES. 

 

(a) In order to ensure the effective supervision and enforcement of this chapter, the commissioner may, pursuant to chapter 14:

 

(1) deny, suspend, revoke, condition, or decline to renew a license for a violation of this chapter, rules issued under this chapter, or order or directive entered under this chapter;

 

(2) deny, suspend, revoke, condition, or decline to renew a license if an applicant or licensee fails at anytime to meet the requirements of section 58A.05 or 58A.08, or withholds information or makes a material misstatement in an application for a license or renewal of a license;

 

(3) order restitution against persons subject to this chapter for violations of this chapter;

 

(4) impose fines on persons subject to this chapter pursuant to paragraphs (b) to (d); and


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(5) issue orders or directives under this chapter as follows:

 

(i) order or direct persons subject to this chapter to cease and desist from conducting business, including immediate temporary orders to cease and desist;

 

(ii) order or direct persons subject to this chapter to cease any harmful activities or violations of this chapter, including immediate temporary orders to cease and desist;

 

(iii) enter immediate temporary orders to cease business under a license or interim license issued pursuant to the authority granted under section 58A.03, subdivision 4, if the commissioner determines that the license was erroneously granted or the licensee is currently in violation of this chapter; and

 

(iv) order or direct other affirmative action the commissioner considers necessary.

 

(b) The commissioner may impose a civil penalty on a mortgage loan originator or person subject to this chapter, if the commissioner finds, on the record after notice and opportunity for hearing, that the mortgage loan originator or person subject to this chapter has violated or failed to comply with any requirement of this chapter or any rule prescribed by the commissioner under this chapter or order issued under authority of this chapter.

 

(c) The maximum amount of penalty for each act or omission described in paragraph (b) is $25,000.

 

(d) Each violation or failure to comply with any directive or order of the commissioner is a separate and distinct violation or failure.

 

Sec. 14.  [58A.13] SURETY BOND REQUIRED. 

 

Subdivision 1.  Coverage, form, and rules.  (a) Each mortgage loan originator must be covered by a surety bond meeting the requirements of this section.  In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to this chapter, the surety bond of the person subject to this chapter can be used in lieu of the mortgage loan originator's surety bond requirement.

 

(b) The surety bond shall provide coverage for each mortgage loan originator in an amount as prescribed in subdivision 2.

 

(c) The surety bond must be in a form as prescribed by the commissioner.

 

Subd. 2.  Penal sum of surety bond.  The penal sum of the surety bond must be maintained in an amount that reflects the dollar amount of loans originated as determined by the commissioner.

 

Subd. 3.  Action on bond.  When an action is commenced on a licensee's bond the commissioner may require the filing of a new bond.

 

Subd. 4.  New bond.  Immediately upon recovery upon any action on the bond the licensee shall file a new bond.

 

Sec. 15.  [58A.14] CONFIDENTIALITY. 

 

Subdivision 1.  Protections.  Except as otherwise provided in Public Law 110-289, section 1512, the requirements under chapter 13 or any federal law regarding the privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licensing System and Registry, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to the information or material, continue to apply to the information or material after the information or material has been disclosed to the


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Nationwide Mortgage Licensing System and Registry.  The information and material may be shared with all state and federal regulatory officials with mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by chapter 13 or federal law.

 

Subd. 2.  Agreements and sharing arrangements.  For purposes of this section, the commissioner is authorized to enter agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators, or other associations representing governmental agencies as established by rule or order of the commissioner.

 

Subd. 3.  Nonapplicability of certain requirements.  Information or material that is subject to a privilege or confidentiality under subdivision 1 is not subject to:

 

(1) disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of the federal government or the respective state; or

 

(2) subpoena or discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the Nationwide Mortgage Licensing System and Registry with respect to the information or material, the person to whom the information or material pertains waives, in whole or in part, in the discretion of the person, that privilege.

 

Subd. 4.  Coordination with Minnesota Government Data Practices Act.  Chapter 13 relating to the disclosure of confidential supervisory information or any information or material described in subdivision 1 that is inconsistent with subdivision 1 is superseded by the requirements of this section.

 

Subd. 5.  Public access to information.  This section does not apply with respect to the information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators that are included in the Nationwide Mortgage Licensing System and Registry for access by the public.

 

Sec. 16.  [58A.15] INVESTIGATION AND EXAMINATION AUTHORITY. 

 

Subdivision 1.  Generally.  In addition to any authority allowed under this chapter, the commissioner may conduct investigations and examinations according to subdivisions 2 to 9.

 

Subd. 2.  Authority to access information.  For purposes of initial licensing, license renewal, license suspension, license conditioning, license revocation or termination, or general or specific inquiry or investigation to determine compliance with this chapter, the commissioner may access, receive and use any books, accounts, records, files, documents, information or evidence including but not limited to:

 

(1) criminal, civil, and administrative history information, including nonconviction data;

 

(2) personal history and experience information including independent credit reports obtained from a consumer reporting agency described in United States Code, title 15, section 1681a(p); and

 

(3) any other documents, information, or evidence the commissioner considers relevant to the inquiry or investigation regardless of the location, possession, control, or custody of the documents, information, or evidence.

 

Subd. 3.  Investigation, examination, and subpoena authority.  For the purposes of investigating violations or complaints arising under this chapter, or for the purposes of examination, the commissioner may review, investigate, or examine a licensee, individual, or person subject to this chapter, as often as necessary in order to carry out the purposes of this chapter.  The commissioner may direct, subpoena, or order the attendance of and examine under


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oath all persons whose testimony may be required about the loans or the business or subject matter of any such examination or investigation, and may direct, subpoena, or order such person to produce books, accounts, records, files, and any other documents the commissioner considers relevant to the inquiry.

 

Subd. 4.  Availability of books and records.  A licensee, individual, or person subject to this chapter shall make available to the commissioner upon request the books and records relating to the operations of the licensee, individual, or person subject to this chapter.  The commissioner shall have access to the books and records and interview the officers, principals, mortgage loan originators, employees, independent contractors, agents, and customers of the licensee, individual, or person subject to this chapter concerning the licensee's, individual's, or person's business.

 

Subd. 5.  Reports and other information as directed.  A licensee, individual, or person subject to this chapter shall make or compile reports or prepare other information as directed by the commissioner in order to carry out the purposes of this section including but not limited to:

 

(1) accounting compilations;

 

(2) information lists and data concerning loan transactions in a format prescribed by the commissioner; or

 

(3) other information the commissioner considers necessary to carry out the purposes of this section.

 

Subd. 6.  Control access to records.  In making an examination or investigation authorized by this chapter, the commissioner may control access to documents and records of the licensee or person under examination or investigation.  The commissioner may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept.  During the period of control, no individual or person shall remove or attempt to remove any of the documents and records except pursuant to a court order or with the consent of the commissioner.  Unless the commissioner has reasonable grounds to believe the documents or records of the licensee have been, or are at risk of being, altered or destroyed for purposes of concealing a violation of this chapter, the licensee or owner of the documents and records has access to the documents or records as necessary to conduct its ordinary business affairs.

 

Subd. 7.  Additional authority.  In order to carry out the purposes of this section, the commissioner may:

 

(1) retain attorneys, accountants, or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;

 

(2) enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this section;

 

(3) use, hire, contract, or employ public or privately available analytical systems, methods, or software to examine or investigate the licensee, individual, or person subject to this chapter;

 

(4) accept and rely on examination or investigation reports made by other government officials, within or without this state; or

 

(5) accept audit reports made by an independent certified public accountant for the licensee, individual, or person subject to this chapter in the course of that part of the examination covering the same general subject matter as the audit and incorporate the audit report in the report of the examination, report of investigation or other writing of the commissioner.


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Subd. 8.  Effect of authority.  The authority of this section remains in effect, whether a licensee, individual, or person subject to this chapter acts or claims to act under any licensing or registration law of this state, or claims to act without such authority.

 

Subd. 9.  Withhold records.  A licensee, individual, or person subject to investigation or examination under this section shall not knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information.

 

Sec. 17.  [58A.16] PROHIBITED ACTS AND PRACTICES. 

 

Subdivision 1.  Generally.  It is a violation of this chapter for a person or individual subject to this chapter to:

 

(1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;

 

(2) engage in any unfair or deceptive practice toward any person;

 

(3) obtain property by fraud or misrepresentation;

 

(4) solicit or enter into a contract with a borrower that provides in substance that the person or individual subject to this chapter may earn a fee or commission through "best efforts" to obtain a loan even though no loan is actually obtained for the borrower;

 

(5) solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting;

 

(6) conduct any business covered by this chapter without holding a valid license as required under this chapter, or assist or aide and abet any person in the conduct of business under this chapter without a valid license as required under this chapter;

 

(7) fail to make disclosures as required by this chapter and any other applicable state or federal law or regulations;

 

(8) fail to comply with this chapter or rules adopted under this chapter or fail to comply with any other state or federal law or regulations applicable to any business authorized or conducted under this chapter;

 

(9) make, in any manner, any false or deceptive statement or representation including, with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan; or engage in bait-and-switch advertising;

 

(10) negligently make a false statement or knowingly and willfully make an omission of material fact in connection with any information or reports filed with a governmental agency or the Nationwide Mortgage Licensing System and Registry or in connection with an investigation conducted by the commissioner or another governmental agency;

 

(11) make a payment, threat, or promise, directly or indirectly, to a person for the purposes of influencing the independent judgment of the person in connection with a residential mortgage loan, or make a payment threat or promise, directly or indirectly, to an appraiser of a property, for the purposes of influencing the independent judgment of the appraiser with respect to the value of the property;


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(12) collect, charge, attempt to collect or charge, or use or propose an agreement purporting to collect or charge a fee prohibited by this chapter;

 

(13) cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer; or

 

(14) fail to truthfully account for money belonging to a party to a residential mortgage loan transaction.

 

Subd. 2.  Loan processor or underwriter activities.  An individual engaging solely in loan processor or underwriter activities shall not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator.

 

Sec. 18.  [58A.17] MORTGAGE CALL REPORTS. 

 

A mortgage licensee shall submit to the Nationwide Mortgage Licensing System and Registry reports of condition, which must be in the form and contain the information the Nationwide Mortgage Licensing System and Registry requires.

 

Sec. 19.  [58A.18] REPORT TO NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY. 

 

The commissioner shall regularly report violations of this chapter, as well as enforcement actions and other relevant information, to the Nationwide Mortgage Licensing System and Registry subject to the provisions contained in section 58A.14.

 

Sec. 20.  [58A.20] UNIQUE IDENTIFIER SHOWN. 

 

The unique identifier of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards or Web sites, and any other documents as established by rule or order of the commissioner.

 

Sec. 21.  [58A.22] INCORPORATION BY REFERENCE. 

 

The final rules adopted by the United States Department of Housing and Urban Development under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, and subsequent amendments, are incorporated by reference.

 

Sec. 22.  EFFECTIVE DATE. 

 

This article is effective July 31, 2010.

 

ARTICLE 5

 

CONFORMING AND TRANSITIONAL PROVISIONS

RELATING TO MINNESOTA STATUTES, CHAPTER 58

 

Section 1.  Minnesota Statutes 2008, section 58.04, subdivision 1, is amended to read:

 

Subdivision 1.  Residential mortgage originator licensing requirements.  (a) No person shall act as a residential mortgage originator, or make residential mortgage loans without first obtaining a license from the commissioner according to the licensing procedures provided in this chapter.


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(b) A licensee must be either a partnership, limited liability partnership, association, limited liability company, corporation, or other form of business organization, and must have and maintain at all times one of the following:  approval as a mortgagee by either the federal Department of Housing and Urban Development or the Federal National Mortgage Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety bond or irrevocable letter of credit in the amount of $50,000 amounts prescribed under section 58.08.  Net worth, net of intangibles, must be calculated in accordance with generally accepted accounting principles.

 

(c) The following persons are exempt from the residential mortgage originator licensing requirements:

 

(1) a person who is not in the business of making residential mortgage loans and who makes no more than three such loans, with its own funds, during any 12-month period;

 

(2) a financial institution as defined in section 58.02, subdivision 10;

 

(3) an agency of the federal government, or of a state or municipal government;

 

(4) an employee or employer pension plan making loans only to its participants;

 

(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a specific order issued by a court of competent jurisdiction; or

 

(6) a person exempted by order of the commissioner.

 

Sec. 2.  Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2, is amended to read:

 

Subd. 2.  Application contents.  (a) The application must contain the name and complete business address or addresses of the license applicant.  The license applicant must be a partnership, limited liability partnership, association, limited liability company, corporation, or other form of business organization, and the application must contain the names and complete business addresses of each partner, member, director, and principal officer.  The application must also include a description of the activities of the license applicant, in the detail and for the periods the commissioner may require.

 

(b) A residential mortgage originator applicant must submit one of the following:

 

(1) evidence which shows, to the commissioner's satisfaction, that either the federal Department of Housing and Urban Development or the Federal National Mortgage Association has approved the residential mortgage originator applicant as a mortgagee;

 

(2) a surety bond or irrevocable letter of credit in the amount of not less than $50,000 in a form approved by the commissioner, issued by an insurance company or bank authorized to do so in this state.  The bond or irrevocable letter of credit must be available for the recovery of expenses, fines, and fees levied by the commissioner under this chapter and for losses incurred by borrowers.  The bond or letter of credit must be submitted with the license application, and evidence of continued coverage must be submitted with each renewal.  Any change in the bond or letter of credit must be submitted for approval by the commissioner within ten days of its execution; or

 

(3) a copy of the residential mortgage originator applicant's most recent audited financial statement, including balance sheet, statement of income or loss, statements of changes in shareholder equity, and statement of changes in financial position.  Financial statements must be as of a date within 12 months of the date of application.  a surety bond that meets the requirements of section 58.08, subdivision 1a.


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(c) The application must also include all of the following:

 

(1) an affirmation under oath that the applicant:

 

(i) is in compliance with the requirements of section 58.125;

 

(ii) will maintain a perpetual roster of individuals employed as residential mortgage originators, including employees and independent contractors, which includes the dates that mandatory testing, initial education, and continuing education were completed.  In addition, the roster must be made available to the commissioner on demand, within three business days of the commissioner's request;

 

(iii) (ii) will advise the commissioner of any material changes to the information submitted in the most recent application within ten days of the change;

 

(iv) (iii) will advise the commissioner in writing immediately of any bankruptcy petitions filed against or by the applicant or licensee;

 

(v) (iv) will maintain at all times either a net worth, net of intangibles, of at least $250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000 $100,000;

 

(vi) (v) complies with federal and state tax laws; and

 

(vii) (vi) complies with sections 345.31 to 345.60, the Minnesota unclaimed property law;

 

(2) information as to the mortgage lending, servicing, or brokering experience of the applicant and persons in control of the applicant;

 

(3) information as to criminal convictions, excluding traffic violations, of persons in control of the license applicant;

 

(4) whether a court of competent jurisdiction has found that the applicant or persons in control of the applicant have engaged in conduct evidencing gross negligence, fraud, misrepresentation, or deceit in performing an act for which a license is required under this chapter;

 

(5) whether the applicant or persons in control of the applicant have been the subject of:  an order of suspension or revocation, cease and desist order, or injunctive order, or order barring involvement in an industry or profession issued by this or another state or federal regulatory agency or by the Secretary of Housing and Urban Development within the ten-year period immediately preceding submission of the application; and

 

(6) other information required by the commissioner.

 

Sec. 3.  Minnesota Statutes 2008, section 58.08, is amended by adding a subdivision to read:

 

Subd. 1a.  Residential mortgage originators.  (a) An applicant for a residential mortgage originator license must file with the department a surety bond in the amount of $100,000, issued by an insurance company authorized to do so in this state.  The bond must cover all mortgage loan originators who are employees or independent agents of the applicant.  The bond must be available for the recovery of expenses, fines, and fees levied by the commissioner under this chapter and for losses incurred by borrowers as a result of a licensee's noncompliance with the requirements of this chapter, sections 325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to activities regulated by this chapter.


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(b) The bond must be submitted with the originator's license application and evidence of continued coverage must be submitted with each renewal.  Any change in the bond must be submitted for approval by the commissioner, within ten days of its execution.  The bond or a substitute bond shall remain in effect during all periods of licensing.

 

(c) Upon filing of the mortgage call report as required by section 58A.17, a licensee shall maintain or increase its surety bond to reflect the total dollar amount of the closed residential mortgage loans originated in this state in the preceding year according to the table in this paragraph.  A licensee may decrease its surety bond according to the table in this paragraph if the surety bond required is less than the amount of the surety bond on file with the department.

 

Dollar Amount of Closed Residential Mortgage Loans                 Surety Bond Required

 

$0 to $5,000,000                                                                                           $100,000

$5,000,000.01 to $10,000,000                                                                   $125,000

$10,000,000.01 to $25,000,000                                                                $150,000

Over $25,000,000                                                                                         $200,000

 

For purposes of this subdivision, "mortgage loan originator" has the meaning given the term in section 58A.02, subdivision 7.

 

Sec. 4.  Minnesota Statutes 2008, section 58.09, is amended to read:

 

58.09 TERM OF LICENSE. 

 

Initial Licenses for residential mortgage originators and residential mortgage servicers issued under this chapter expire on July 31, 2001, December 31 and are renewable on August 1, 2001, and on August 1 January 1 of each odd-numbered year after that date.  A new licensee whose license expires less than 12 months from the date of issuance shall pay a fee equal to one-half the applicable initial license fee set forth in section 58.10, subdivision 1, clause (1) or (3).

 

Sec. 5.  Minnesota Statutes 2008, section 58.10, subdivision 1, is amended to read:

 

Subdivision 1.  Amounts.  The following fees must be paid to the commissioner:

 

(1) for an initial a residential mortgage originator license, $2,125 $1,000, $50 of which is credited to the consumer education account in the special revenue fund;

 

(2) for a renewal license, $1,125 $500, $50 of which is credited to the consumer education account in the special revenue fund;

 

(3) for an initial a residential mortgage servicer's license, $1,000 $500;

 

(4) for a renewal license, $500 $250; and

 

(5) for a certificate of exemption, $100.

 

Sec. 6.  Minnesota Statutes 2008, section 58.11, is amended to read:

 

58.11 LICENSE RENEWAL. 

 

Subdivision 1.  Term.  Licenses are renewable on August 1, 2001, and on August 1 January 1 of each odd-numbered year after that date.


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Subd. 2.  Timely renewal.  (a) A person whose application is properly and timely filed who has not received notice of denial of renewal is considered approved for renewal and the person may continue to transact business as a residential mortgage originator or servicer whether or not the renewed license has been received on or before August January 1 of the renewal year.  Application for renewal of a license is considered timely filed if received by the commissioner by, or mailed with proper postage and postmarked by, July December 15 of the renewal year.  An application for renewal is considered properly filed if made upon forms duly executed and sworn to, accompanied by fees prescribed by this chapter, and containing any information that the commissioner requires.

 

(b) A person who fails to make a timely application for renewal of a license and who has not received the renewal license as of August January 1 of the renewal year is unlicensed until the renewal license has been issued by the commissioner and is received by the person.

 

Subd. 3.  Contents of renewal application.  Application for the renewal of an existing license must contain the information specified in section 58.06, subdivision 2; however, only the requested information having changed from the most recent prior application need be submitted. 

 

Subd. 4.  Cancellation.  A licensee ceasing an activity or activities regulated by this chapter and desiring to no longer be licensed shall so inform the commissioner in writing and, at the same time, surrender the license and all other symbols or indicia of licensure.  The licensee shall include a plan for the withdrawal from regulated business, including a timetable for the disposition of the business.

 

Sec. 7.  RESIDENTIAL MORTGAGE ORIGINATORS AND SERVICERS; TRANSITIONAL LICENSE FEE AND TERMS. 

 

A residential mortgage originator licensee and a residential mortgage service licensee operating under a valid license under Minnesota Statutes 2008, chapter 58, with an expiration date of July 31, 2011, shall pay a prorated renewal fee of $200 for a residential mortgage originator, and $100 for a residential mortgage servicer.  The prorated license renewal fee must be paid by December 31, 2010, and such payment extends the license term until December 31, 2011.

 

Sec. 8.  REPEALER. 

 

Minnesota Statutes 2009 Supplement, section 58.126, is repealed.

 

Sec. 9.  EFFECTIVE DATE. 

 

This article is effective July 31, 2010.

 

ARTICLE 6

 

COMMERCE

 

Section 1.  Minnesota Statutes 2008, section 60K.36, subdivision 2, is amended to read:

 

Subd. 2.  Examination not required.  A resident individual applying for a limited lines credit insurance, title insurance, travel baggage insurance, mobile telephone insurance, or bail bonds license is not required to take a written examination.

 

Sec. 2.  Minnesota Statutes 2008, section 60K.38, subdivision 1, is amended to read:

 

Subdivision 1.  Issuance.  (a) Unless denied a license under section 60K.43, a person who has met the requirements of sections 60K.36 and 60K.37 must be issued an insurance producer license.  An insurance producer may receive qualification for a license in one or more of the lines of authority in paragraphs (b) and (c).


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(b) An individual insurance producer may receive qualification for a license in one or more of the following major lines:

 

(1) life insurance:  coverage on human lives including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income;

 

(2) accident and health or sickness insurance:  coverage for sickness, bodily injury, or accidental death, and may include benefits for disability income;

 

(3) property insurance:  coverage for the direct or consequential loss or damage to property of every kind;

 

(4) casualty insurance:  coverage against legal liability, including that for death, injury, or disability, or damage to real or personal property;

 

(5) variable life and variable annuity products insurance:  coverage provided under variable life insurance contracts and variable annuities; and

 

(6) personal lines:  property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes.

 

(c) An individual insurance producer may receive qualification for a license in one or more of the following limited lines:

 

(1) limited line credit insurance;

 

(2) farm property and liability insurance;

 

(3) title insurance;

 

(4) travel baggage insurance; and

 

(5) mobile telephone insurance; and

 

(6) (5) bail bonds.

 

Sec. 3.  [60K.381] SALE OF PORTABLE ELECTRONICS INSURANCE. 

 

Subdivision 1.  Definitions.  For purposes of this section, the following terms have the following meanings:

 

(a) "Customer" means a person who purchases portable electronics or services.

 

(b) "Covered customer" means a customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics.

 

(c) "Portable electronics" means electronic devices that are portable in nature, their accessories, and services related to the use of the device.

 

(d)(1) "Portable electronics insurance" means insurance providing coverage for the repair or replacement of portable electronics, which may cover portable electronics against any one or more of the following causes of loss:  loss, theft, mechanical failure, malfunction, damage, or other applicable perils.


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(2) "Portable electronics insurance" does not include:

 

(i) a service contract governed by chapter 59B;

 

(ii) a policy of insurance covering a seller's or a manufacturer's obligations under a warranty; or

 

(iii) a homeowner's, renter's, private passenger automobile, commercial multiperil, or similar policy that covers loss or theft of portable electronics.

 

(e) "Portable electronics transaction" means:

 

(1) the sale or lease of portable electronics by a vendor to a customer; or

 

(2) the sale of a service related to the use of portable electronics by a vendor to a customer.

 

(f) "Supervising agency" means a business entity that is a licensed insurance producer.

 

(g) "Vendor" means a business entity in the business of engaging in portable electronics transactions, directly or indirectly.

 

Subd. 2.  Licensure of vendors.  (a) A vendor is required to hold a limited lines license issued under this section to sell or offer coverage under a policy of portable electronics insurance in connection with, and incidental to, a portable electronics transaction with a customer.

 

(b) A limited lines license issued under this section shall authorize any employee or authorized representative of the vendor to sell or offer coverage under a policy of portable electronics insurance to a customer in connection with, and incidental to, a portable electronics transaction at each location at which the vendor engages in portable electronics transactions.  The application for such a limited lines license shall set forth each location at which the vendor offers coverage under a policy of portable electronics insurance.  The vendor shall notify the commissioner within 30 days of adding or eliminating such a location.

 

(c) Notwithstanding any other provision of law, a license issued pursuant to this section shall authorize the licensee and its employees or authorized representatives to engage only in those activities that are expressly permitted in this section.

 

Subd. 3.  Requirements for sale of portable electronics insurance.  (a) At every location where portable electronics insurance is offered to customers, brochures, or other written materials must be made available to a prospective customer which:

 

(1) disclose that portable electronics insurance may provide a duplication of coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage;

 

(2) state that the enrollment by the customer in a portable electronics insurance program is not required in order to purchase or lease portable electronics or services;

 

(3) summarize the material terms of the insurance coverage, including:

 

(i) the identity of the insurer;

 

(ii) the identity of the supervising agency;


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(iii) the amount of any applicable deductible and how it is to be paid;

 

(iv) benefits of the coverage;

 

(v) the terms for terminating or modifying coverage as set forth in the policy of portable electronics insurance; and

 

(vi) any material exclusions, conditions, or other limitations of coverage including whether portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment;

 

(4) describe the process for filing a claim, including a description of any requirements:

 

(i) to return portable electronics and the maximum fee applicable in the event the customer fails to comply with any equipment return requirements; and

 

(ii) any proof of loss requirements; and

 

(5) state that the customer may cancel enrollment for coverage under a portable electronics insurance policy at any time and any unearned premium will be refunded on a pro rata basis.

 

(b) Portable electronics insurance may be offered on a month to month or other periodic basis as a group or master commercial inland marine policy issued to a vendor of portable electronics under which individual customers may elect to enroll for coverage.

 

(c) Notwithstanding any other provision of Minnesota law regarding the termination or modification of coverage under a policy of insurance, the terms for the termination or modification of coverage under a policy of portable electronics insurance issued in compliance with this chapter shall be as set forth in the policy.

 

(d) Eligibility and underwriting standards for customers electing to enroll in coverage shall be established for each portable electronics insurance program.

 

Subd. 4.  Authority of vendors of portable electronics.  (a) The employees and authorized representatives of vendors may sell or offer portable electronics insurance to customers and shall not be subject to licensure as an insurance producer under this chapter provided that:

 

(1) the vendor obtains a limited lines license to authorize its employees or authorized representatives to sell or offer portable electronics insurance pursuant to this section;

 

(2) the insurer issuing the portable electronics insurance appoints a supervising agency to supervise the administration of the program including development of a training program for employees and authorized representatives of the vendors.  The training required by this subdivision shall comply with the following:

 

(i) the training shall be delivered to all employees and authorized representatives of the vendors who sell or offer portable electronics insurance;

 

(ii) the training may be provided in electronic form.  However, if conducted in an electronic form, the supervising agency shall implement a program of in-person training conducted by licensed employees of the supervising agency to supplement the electronic training; and

 

(iii) each employee and authorized representative shall receive basic instruction about the portable electronics insurance offered to customers and the disclosures required under subdivision 3; and


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(3) no employee or authorized representative of a vendor of portable electronics shall advertise, represent, or otherwise hold himself or herself out as a nonlimited lines licensed insurance producer.

 

(b) The charges for insurance coverage may be billed and collected by the vendor of portable electronics.  If billed and collected by the vendor, the charges shall be separately itemized from the charges for the purchase or lease of portable electronics or services.  Vendors billing and collecting such charges shall not be required to maintain such funds in a segregated account provided that the vendor is authorized by the insurer to hold such funds in an alternative manner and remits such amounts to the supervising agency within 60 days of receipt.  All funds received by a vendor from a customer for the sale of portable electronics insurance shall be considered funds held by the vendor in a fiduciary capacity for the benefit of the insurer.  Vendors may receive compensation for billing and collection services.

 

Sec. 4.  Minnesota Statutes 2009 Supplement, section 60K.55, subdivision 2, is amended to read:

 

Subd. 2.  Licensing fees.  (a) In addition to fees provided for examinations and the technology surcharge required under paragraph (d), each insurance producer licensed under this chapter shall pay to the commissioner a fee of:

 

(1) $50 for an initial life, accident and health, property, or casualty license issued to an individual insurance producer, and a fee of $50 for each renewal;

 

(2) $50 for an initial variable life and variable annuity license issued to an individual insurance producer, and a fee of $50 for each renewal;

 

(3) $50 for an initial personal lines license issued to an individual insurance producer, and a fee of $50 for each renewal;

 

(4) $50 for an initial limited lines license issued to an individual insurance producer, and a fee of $50 for each renewal;

 

(5) $200 for an initial license issued to a business entity, and a fee of $200 for each renewal; and

 

(6) $500 for an initial surplus lines license, and a fee of $500 for each renewal;

 

(7) $100 per location for the initial and renewal of a portable electronics insurance limited lines license issued to a vendor, as defined in section 60K.381, subdivision 1, paragraph (g), engaged in portable electronics transactions at ten or fewer locations in this state as set forth in its application and any subsequent notice under section 60K.381, subdivision 2, paragraph (b); and

 

(8) $6,500 for the initial and renewal of a portable electronics insurance limited lines license issued to a vendor, as defined in section 60K.381, subdivision 1, paragraph (g), engaged in portable electronics transactions at more than ten locations in this state as set forth in its application and any subsequent notice under section 60K.381, subdivision 2, paragraph (b).

 

(b) Initial licenses issued to a business entity under this chapter and section 60K.381 are valid for a period not to exceed 24 months and expire on October 31 of the renewal year assigned by the commissioner.  Initial licenses issued to an individual insurance producer under this chapter before August 1, 2010, are valid for a period not to exceed 24 months and expire on October 31 of the renewal year assigned by the commissioner.  Each individual license initially issued or renewed on or after August 1, 2010, expires on the last day of the birth month of the producer in the year that will result in the term of the license being at least 12 months, but no more than 24 months.  Beginning with the first license expiration on the last day of the birth month of an individual producer as set forth in


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this paragraph, all such licenses must after this date expire biennially on the last day of the birth month of the individual producer that is two years subsequent to the preceding expiration date.  Each renewal insurance producer license is valid for a period of 24 months. 

 

(c) All fees are nonreturnable, except that an overpayment of any fee may be refunded upon proper application.

 

(d) In addition to the fees required under paragraph (a), individual insurance producers shall pay, for each initial license and renewal, a technology surcharge of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted under that section.

 

Sec. 5.  Minnesota Statutes 2009 Supplement, section 82B.05, subdivision 1, is amended to read:

 

Subdivision 1.  Members.  The Real Estate Appraiser Advisory Board consists of 15 nine members appointed by the commissioner of commerce.  Three of the members must be public members, four must be consumers of appraisal services, of whom one member must be employed in the financial lending industry, and eight six must be real estate appraisers who are currently licensed in good standing, of whom not less than two three members must be trainee real property appraisers, licensed real property appraisers, or certified residential real property appraisers, not less than two and three members must be certified general real property appraisers, and not less than.  At least one member of the board must be certified by the Appraisal Qualification Board of the Appraisal Foundation to teach the Uniform Standards of Professional Appraisal Practice.  Each of the three categories of members must include at least one member who lives or works outside of the seven-county metropolitan area.  The board is governed by section 15.0575.

 

EFFECTIVE DATE.  This section is effective January 1, 2011.

 

Sec. 6.  Minnesota Statutes 2008, section 82B.05, subdivision 5, is amended to read:

 

Subd. 5.  Conduct of meetings.  Places of regular board meetings must be decided by the vote of members.  Written notice must be given to each member of the time and place of each meeting of the board at least ten days before the scheduled date of regular board meetings.  The board shall establish procedures for emergency board meetings and other operational procedures, subject to the approval of the commissioner.

 

The members of the board shall elect a chair from among the members to preside at board meetings.

 

A quorum of the board is eight five members.

 

The board shall meet at least once every six months as determined by a majority vote of the members or a call of the commissioner.

 

EFFECTIVE DATE.  This section is effective January 1, 2011.

 

Sec. 7.  Minnesota Statutes 2008, section 82B.05, is amended by adding a subdivision to read:

 

Subd. 7.  Enforcement data.  The commissioner shall, on a regular basis, provide the board with the commissioner's public enforcement data.

 

EFFECTIVE DATE.  This section is effective January 1, 2011.

 

Sec. 8.  Minnesota Statutes 2008, section 82B.06, is amended to read:

 

82B.06 POWERS OF THE BOARD. 

 

The board shall make recommendations to the commissioner as the commissioner requests or at the board's own initiative on:


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(1) rules with respect to each category of licensed real estate appraiser, the type of educational experience, appraisal experience, and equivalent experience that will meet the requirements of this chapter;

 

(2) examination specifications for each category of licensed real estate appraiser, to assist in providing or obtaining appropriate examination questions and answers, and procedures for grading examinations;

 

(3) rules with respect to each category of licensed real estate appraiser, the continuing education requirements for the renewal of licensing that will meet the requirements provided in this chapter;

 

(4) periodic review of the standards for the development and communication of real estate appraisals provided in this chapter and rules explaining and interpreting the standards; and

 

(5) other matters necessary in carrying out the provisions of this chapter.

 

EFFECTIVE DATE.  This section is effective January 1, 2011.

 

Sec. 9.  [82C.01] TITLE. 

 

This chapter shall be known as the Minnesota Appraisal Management Company Licensing and Regulation Act.

 

Sec. 10.  [82C.02] DEFINITIONS. 

 

Subdivision 1.  Terms.  As used in this chapter, the terms in this section have the meanings given them.

 

Subd. 2.  Appraisal.  In conformance with the Uniform Standards of Professional Appraisal Practice (USPAP), "appraisal" is defined as:  (noun) the act or process of developing an opinion of value; an opinion of value; (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services.  For purposes of this chapter, all appraisals or assignments that are referred to involve one to four unit single-family properties.

 

Subd. 3.  Appraisal assignment.  "Appraisal assignment" means an engagement for which an appraiser is employed or retained to act, as a disinterested third party in giving an unbiased analysis, opinion, or conclusion relating to the nature, quality, value, or utility of named interests in, or aspects of, identified real estate.

 

Subd. 4.  Appraisal management company.  "Appraisal management company" means a corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity that directly or indirectly performs the following appraisal management services:

 

(1) administers networks of independent contractors and/or employee appraisers to perform residential real estate appraisal assignments for clients;

 

(2) receives requests for residential real estate appraisal services from clients and, for a fee paid by the client, enters into an agreement with one or more independent appraisers to perform the real estate appraisal services contained in the request; or

 

(3) serves as a third-party broker of appraisal management services between clients and appraisers.

 

Subd. 5.  Appraisal management services.  "Appraisal management services" means the process of directly or indirectly performing any of the following functions on behalf of a lender, financial institution, client, or any other person to:


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(1) administer an appraiser panel;

 

(2) recruit, qualify, verify licensing or certification, and negotiate fees and service level expectations with persons who are part of an appraiser panel;

 

(3) receive an order for an appraisal from one person, and deliver the order for the appraisal to an appraiser that is part of an appraiser panel for completion;

 

(4) track and determine the status of orders for appraisals;

 

(5) conduct quality control of a completed appraisal prior to the delivery of the appraisal to the person that ordered the appraisal; or

 

(6) provide a completed appraisal performed by an appraiser to one or more clients.

 

Subd. 6.  Appraiser.  "Appraiser" means a person who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective, and who is licensed under chapter 82B.

 

Subd. 7.  Appraiser panel.  "Appraiser panel" means a network of licensed or certified appraisers who are independent contractors to the appraisal management company that have:

 

(1) responded to an invitation, request, or solicitation from an appraisal management company, in any form, to perform appraisals for persons that have ordered appraisals through the appraisal management company, or to perform appraisals for the appraisal management company directly, on a periodic basis, as requested and assigned by the appraisal management company; and

 

(2) been selected and approved by an appraisal management company to perform appraisals for any client of the appraisal management company that has ordered an appraisal through the appraisal management company, or to perform appraisals for the appraisal management company directly, on a periodic basis, as assigned by the appraisal management company.

 

Subd. 8.  Appraisal review.  "Appraisal review" means the act of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal assignment, except that an examination of an appraisal for grammatical, typographical, or other similar errors that do not make a substantive valuation change shall not be an appraisal review.

 

Subd. 9.  Client.  "Client" means any person or entity that contracts with, or otherwise enters into an agreement with, an appraisal management company for the performance of real estate appraisal services or appraisal management services.  For purposes of this chapter, the appraisal management company is the party engaging the independent appraiser and can be the appraiser's client.  However, this does not preclude an appraisal management company from acting as a duly authorized agent for a lender.

 

Subd. 10.  Commissioner.  "Commissioner" means the commissioner of commerce.

 

Subd. 11.  Controlling person.  "Controlling person" means:

 

(1) any owner, officer, or director of an appraisal management company seeking to offer appraisal management services in this state;


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(2) an individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with other persons for the performance of appraisal management services and has the authority to enter into agreements with appraisers for the performance of appraisals;

 

(3) an individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company; or

 

(4) an individual who enters into:

 

(i) contractual relationships with clients for the performance of appraisal management services; and

 

(ii) agreements with employed and independent appraisers for the performance of real estate appraisal services.

 

Subd. 12.  Employee.  "Employee" means an individual who is treated as an employee for purposes of compliance with federal income tax laws.

 

Subd. 13.  Person.  "Person" means a natural person, firm, partnership, limited liability partnership, corporation, association, limited liability company, or other form of business organization and the officers, directors, employees, or agents of that person.

 

Subd. 14.  USPAP.  "USPAP" means the Uniform Standards of Professional Appraisal Practice as established by the Appraisal Foundation.  State and federal regulatory authorities enforce the content of the current or applicable edition of USPAP.

 

Sec. 11.  [82C.03] LICENSING. 

 

Subdivision 1.  Requirement.  It is unlawful for a person, corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity to directly or indirectly engage or attempt to engage in business as an appraisal management company, to directly or indirectly engage or attempt to perform appraisal management services, or to advertise or hold itself out as engaging in or conducting business as an appraisal management company without first obtaining a license issued by the commissioner under the provisions of this chapter.

 

Subd. 2.  Owner requirements.  (a) An appraisal management company applying to the commissioner for a license in this state may not be more than ten percent owned by any person that is currently subject to any cease and desist order or injunctive order that would preclude involvement with an appraisal management company, or that has ever:

 

(1) voluntarily surrendered in lieu of disciplinary action an appraiser certification, registration or license, or an appraisal management company license;

 

(2) been the subject of a final order revoking or denying an appraiser certification, registration or license, or an appraisal management company license; or

 

(3) a final order barring involvement in any industry or profession issued by this or another state or federal regulatory agency.

 

(b) A person that owns more than ten percent of an appraisal management company in this state shall:

 

(1) be of good moral character, as determined by the commissioner;

 

(2) submit to a background investigation, as determined by the commissioner; and


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(3) certify to the commissioner that the person has never been the subject of an order of certificate, registration or license suspension, revocation, or denial; cease and desist order; injunctive order; or order barring involvement in an industry or profession issued by this or another state or federal regulatory agency.

 

Subd. 3.  Designated controlling person requirements.  (a) Designation.  Each appraisal management company applying to the commissioner for a license in this state shall designate a controlling person that will be the main contact for all communication between the commissioner and the appraisal management company.

 

(b) Requirements.  In order to serve as a designated controlling person of an appraisal management company, a person must:

 

(1) certify to the commissioner that the person is not currently subject to any cease and desist order or injunctive order that would preclude involvement with an appraisal management company, and has never been the subject of an order suspending, revoking, or denying a certification, registration, or license for real estate services, or a final order barring involvement in any industry or profession issued by this or another state or federal regulatory agency;

 

(2) be of good moral character, as determined by the commissioner; and

 

(3) submit to a background investigation, as determined by the commissioner.

 

Subd. 4.  Application for license.  Application for an appraisal management company license must be submitted on a form prescribed by the commissioner.

 

Subd. 5.  Minimum information.  The application must, at a minimum, include the following information:

 

(1) the name of the entity seeking registration;

 

(2) the business address or addresses of the entity seeking registration;

 

(3) telephone contact and e-mail information of the entity seeking registration;

 

(4) if the entity is not a corporation that is domiciled in this state, the name and contact information for the company's agent for service of process in this state;

 

(5) the name, address, and contact information for an individual or corporation, partnership, limited liability company, association, or other business entity that owns ten percent or more of the appraisal management company;

 

(6) the name, address, and contact information for a controlling person or persons;

 

(7) a certification that the entity has a system and process in place to verify that a person being added to the employment or appraiser panel of the appraisal management company for appraisal services within this state holds an active appraisal license in this state pursuant to chapter 82B if a license is required to perform appraisals;

 

(8) a certification that the entity has a system in place to review the work of all employed and independent appraisers that are performing real estate appraisal services for the appraisal management company on a periodic basis to verify that the real estate appraisal assignments are being conducted in accordance with USPAP and chapter 82B;

 

(9) a certification that the entity maintains a detailed record of each service request that it receives and the independent appraiser that performs the real estate appraisal services for the appraisal management company, pursuant to section 82C.13;


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(10) a certification that the employees of the appraisal management company will be appropriately trained and familiar with the appraisal process;

 

(11) a certification that the appraisal management company has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds a license in good standing in this state pursuant to chapter 82B; and

 

(12) an irrevocable Uniform Consent to Service of Process, pursuant to section 82C.07.

 

Subd. 6.  Effective date of license.  Initial licenses issued under this chapter are effective upon issuance and remain valid, subject to denial, suspension, or revocation under this chapter, until the following August 31.

 

Sec. 12.  [82C.04] TERM OF LICENSE. 

 

Initial licenses issued under this chapter are valid for a period not to exceed one year.  Each initial license must expire on August 31 of the expiration year assigned by the commissioner.

 

Sec. 13.  [82C.05] LICENSE RENEWAL. 

 

Subdivision 1.  Term.  Licenses renewed under this chapter are valid for a period of 12 months.

 

Subd. 2.  Timely renewal.  (a) Application for timely renewal of a license is considered timely filed if received by the commissioner before the date of the license expiration.

 

(b) An application for renewal is considered properly filed if made upon a form prescribed by the commissioner, accompanied by fees prescribed by this chapter, and containing any information the commissioner requires.

 

(c) A licensee failing to make timely application for renewal of the license is unlicensed until the renewal license has been issued by the commissioner and is received by the licensee.

 

Subd. 3.  Contents of renewal application.  Application for the renewal of an existing license must contain the information specified in section 82C.03.  However, only the requested information having changed from the most recent prior application need be submitted.

 

Subd. 4.  Cancellation.  A licensee ceasing an activity or activities regulated by this chapter and desiring to no longer be licensed shall so inform the commissioner in writing and, at the same time, surrender the license and all other symbols or indicia of licensure.

 

Sec. 14.  [82C.06] EXEMPTIONS. 

 

This chapter does not apply to:

 

(1) a person that exclusively employs appraisers on an employer and employee basis for the performance of appraisals, and:

 

(i) the employer is responsible for ensuring that the appraisals are performed by employees in accordance with USPAP; and

 

(ii) the employer accepts all liability associated with the performance of the appraisal by the employee;


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(2) a department or unit within a financial institution that is subject to direct regulation by an agency of the United States government, or to regulation by an agency of this state, that receives a request for the performance of an appraisal from one employee of the financial institution, and another employee of the same financial institution assigns the request for the appraisal to an appraiser that is an independent contractor to the institution, except that an appraisal management company that is a wholly owned subsidiary of a financial institution shall not be considered a department or unit within a financial institution to which the provisions of this chapter do not apply;

 

(3) a person that enters into an agreement, whether written or otherwise, with an appraiser for the performance of an appraisal, and upon the completion of the appraisal, the report of the appraiser performing the appraisal is signed by both the appraiser who completed the appraisal and the appraiser who requested the completion of the appraisal, except that an appraisal management company may not avoid the requirements of this chapter by requiring that an employee of the appraisal management company that is an appraiser to sign an appraisal that is completed by an appraiser that is part of the appraisal panel of the appraisal management company; or

 

(4) any governmental agency performing appraisals on behalf of that level of government or any agency performing ad valorem tax appraisals for county assessors.

 

Sec. 15.  [82C.07] CONSENT TO SERVICE OF PROCESS. 

 

Each entity applying for a license as an appraisal management company in this state shall complete an irrevocable Uniform Consent to Service of Process as prescribed by the commissioner.

 

Sec. 16.  [82C.08] LICENSING FEES. 

 

Subdivision 1.  Establishment and retention.  The fees shall be retained by the commissioner for the sole purpose of administering this licensing and regulation program.

 

Subd. 2.  Amounts.  (a) Each application for initial licensure shall be accompanied by a fee of $5,000.

 

(b) Each application for renewal of the license must be received prior to the two-year expiration period with the renewal fee of $2,500.

 

Subd. 3.  Forfeiture.  All fees are nonrefundable except that an overpayment of a fee must be refunded upon proper application.

 

Sec. 17.  [82C.09] INVESTIGATIONS AND SUBPOENAS. 

 

The commissioner has under this chapter the same powers with respect to chapter 45.027, including the authority to impose a civil penalty not to exceed $10,000 per violation.

 

Sec. 18.  [82C.10] EMPLOYEE REQUIREMENTS. 

 

An employee of the appraisal management company that has the responsibility to review the work of employed and independent appraisers where the subject properties are located within this state, which include the reviewer's opinion of value or concurrence with the original appraiser's value, must be licensed according to chapter 82B and perform the review assignments in compliance with USPAP and chapter 82B.  This requirement does not apply to employees who review appraisals for completeness and compliance in connection with an appraisal management company's internal quality control processes, but who do not perform appraisal reviews that are subject to Standard 3 of USPAP.


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Sec. 19.  [82C.11] LIMITATIONS. 

 

An appraisal management company licensed in this state pursuant to this chapter may enter into contracts or agreements for appraisal assignments in this state only with an employee or independent appraiser holding an active Minnesota real estate appraiser license pursuant to chapter 82B.

 

Sec. 20.  [82C.12] ADHERENCE TO STANDARDS. 

 

An appraisal management company must have a system in place to review the work of all employed and independent appraisers that are performing real estate appraisal assignments for the appraisal management company on a periodic basis to verify that the real estate appraisal services are being conducted in accordance with USPAP and chapter 82B.  An appraisal management company is required to make referrals directly to state appraiser regulatory authorities when a state licensed or certified appraiser violates USPAP, applicable state law, or engages in other unethical or unprofessional conduct.

 

Sec. 21.  [82C.13] RECORD KEEPING. 

 

An appraisal management company must maintain a detailed record of each service request that it receives and the employee appraiser or independent appraiser that performs the appraisal assignment for the appraisal management company.

 

Records must be kept for a period of at least five years after the appraisal assignment request is sent to the independent appraiser or completion of the appraisal report, whichever period expires later.

 

Sec. 22.  [82C.14] APPRAISER INDEPENDENCE; PROHIBITIONS. 

 

(a) It is unlawful for any employee, director, officer, or agent of an appraisal management company licensed in this state pursuant to this chapter to influence or attempt to influence the development, reporting, or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, or bribery, including but not limited to:

 

(1) withholding or threatening to withhold timely payment for an appraisal;

 

(2) withholding or threatening to withhold future business or assignments for an employed or independent appraiser, or demoting or terminating or threatening to demote or terminate an employed or independent appraiser;

 

(3) expressly or impliedly promising future business, assignments, promotions, or increased compensation for an employed or independent appraiser;

 

(4) conditioning the request for an appraisal assignment on the payment of an appraisal fee or salary or bonus on the opinion, conclusion, or valuation to be reached, or on a preliminary estimate or opinion requested from an employed or independent appraiser;

 

(5) requesting that an employed or independent appraiser provide an estimated, predetermined, or desired valuation in an appraisal report, or provide estimated values or comparable sales at any time prior to the completion of an appraisal assignment;

 

(6) providing to an employed or independent appraiser an anticipated, estimated, encouraged, or desired value for a subject property or a proposed or target amount to be loaned to the borrower, except that a copy of the sales contract for purchase transactions may be provided;


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(7) providing to an employed or independent appraiser, or any entity or person related to the appraiser, stock, or other financial or nonfinancial benefits;

 

(8) allowing the removal of an employed or independent appraiser from a list of qualified appraisers used by any entity, without prior written notice to the appraiser, which notice must include documented evidence of the appraiser's violation of USPAP, chapter 82B, substandard performance, or otherwise improper or unprofessional behavior;

 

(9) request or require any employed or independent appraiser to provide the appraisal management company or any of its employees, or any of its clients, with the appraiser's digital signature;

 

(10) alter, amend, or change an appraisal report submitted by an appraiser, to include removing or applying a signature, adding or deleting information from the appraisal report;

 

(11) require the appraiser to collect the fee from a borrower, homeowner, or other person;

 

(12) require an appraiser to sign any indemnification agreement that would require the appraiser to defend and hold harmless the appraisal management company or any of its agents, or employees for any liability, damage, losses, or claims arising out of the services performed by the appraisal management company or its agents, employees, or independent contractors and not the services performed by the appraiser;

 

(13) use an appraiser directly selected or referred by any member of a loan production staff for an individual assignment; or

 

(14) any other act or practice that impairs or attempts to impair an appraiser's independence, objectivity, or impartiality.

 

(b) Nothing in paragraph (a) prohibits the appraisal management company from requesting that an independent appraiser:

 

(1) consider additional appropriate property information;

 

(2) provide further detail, substantiation, or explanation for the appraiser's value conclusion; or

 

(3) correct objective factual errors in an appraisal report.

 

Sec. 23.  [82C.15] ADJUDICATION OF DISPUTES BETWEEN AN APPRAISAL MANAGEMENT COMPANY AND AN INDEPENDENT APPRAISER. 

 

Except within the first 30 days after an independent appraiser is first added to the appraiser panel of an appraisal management company, an appraisal management company may not remove an appraiser from its appraiser panel, or otherwise refuse to assign requests for real estate appraisal services to an independent appraiser without:

 

(1) notifying the appraiser in writing of the reasons why the appraiser is being removed from the appraiser panel or is not receiving appraisal requests from the appraisal management company;

 

(2) if the appraiser is being removed from the panel for illegal conduct, having determined that the appraiser has violated USPAP, or chapter 82B, taking into account the nature of the alleged conduct or violation; and

 

(3) providing an opportunity for the appraiser to respond and appeal the notification of the appraisal management company.


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Sec. 24.  [82C.16] DENIAL, SUSPENSION, REVOCATION OF LICENSES. 

 

Subdivision 1.  Powers of commissioner.  The commissioner may by order take any or all of the following actions:

 

(1) bar a person from serving as an officer, director, partner, controlling person, or any similar role at an appraisal management company, if such person has ever been the subject of a final order suspending, revoking or denying a certification, registration or license as a real estate agent, broker, or appraiser, or a final order barring involvement in any industry or profession issued by this or another state or federal regulatory agency;

 

(2) deny, suspend, or revoke an appraisal management company license;

 

(3) censure an appraisal management company license; and

 

(4) impose a civil penalty as provided for in chapter 45.027.

 

(b) In order to take the action in paragraph (a), the commissioner must find:

 

(1) that the order is in the public interest; and

 

(2) that an officer, director, partner, employee, agent, controlling person or persons, or any person occupying a similar status or performing similar functions, has:

 

(i) violated any provision of this chapter;

 

(ii) filed an application for a license that is incomplete in any material respect or contains a statement that, in light of the circumstances under which it is made, is false or misleading with respect to a material fact;

 

(iii) failed to maintain compliance with the affirmations made under section 80C.03, subdivision 5;

 

(iv) violated a standard of conduct or engaged in a fraudulent, coercive, deceptive, or dishonest act or practice, whether or not the act or practice involves the appraisal management company;

 

(v) engaged in an act or practice, whether or not the act or practice involves the business of appraisal management, appraisal assignments, or real estate mortgage related practices, that demonstrates untrustworthiness, financial irresponsibility, or incompetence;

 

(vi) pled guilty, with or without explicitly admitting guilt, pled nolo contendere, or been convicted of a felony, gross misdemeanor, or a misdemeanor involving moral turpitude;

 

(vii) paid a civil penalty or been the subject of disciplinary action by the commissioner, or an order of suspension or revocation, cease and desist order, or injunction order, or an order barring involvement in an industry or profession issued by this or any other state or federal regulatory agency or government-sponsored enterprise, or by the secretary of Housing and Urban Development;

 

(viii) been found by a court of competent jurisdiction to have engaged in conduct evidencing gross negligence, fraud, misrepresentation, or deceit;

 

(ix) refused to cooperate with an investigation or examination by the commissioner;

 

(x) failed to pay any fee or assessment imposed by the commissioner; or


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(xi) failed to comply with state and federal tax obligations.

 

Subd. 2.  Orders of the commissioner.  To begin a proceeding under this section, the commissioner shall issue an order requiring the subject of the proceeding to show cause why action should not be taken against the licensee according to this section.  The order must be calculated to give reasonable notice of the time and place for the hearing and must state the reasons for entry of the order.  The commissioner may by order summarily suspend a license pending a final determination of an order to show cause.  If a license is summarily suspended, pending final determination of an order to show cause, a hearing on the merits must be held within 30 days of the issuance of the order of summary suspension.  All hearings must be conducted under chapter 14.  After the hearing, the commissioner shall enter an order disposing of the matter as the facts require.  If the subject of the order fails to appear at a hearing after having been duly notified of it, the subject is considered in default, and the proceeding may be determined against the subject of the order upon consideration of the order to show cause, the allegations of which may be considered to be true.

 

Subd. 3.  Actions against lapsed license.  If a license lapses, is surrendered, withdrawn, terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding under this subdivision within two years after the license was last effective and enter a revocation or suspension order as of the last date which the license was in effect, and may impose a civil penalty as provided for in this section or section 45.027.

 

Sec. 25.  Minnesota Statutes 2008, section 115C.08, subdivision 1, is amended to read:

 

Subdivision 1.  Revenue sources.  Revenue from the following sources must be deposited in the state treasury and credited to a petroleum tank fund:

 

(1) the proceeds of the fee imposed by subdivision 3;

 

(2) money recovered by the state under sections 115C.04, 115C.05, and 116.491, including administrative expenses, civil penalties, and money paid under an agreement, stipulation, or settlement;

 

(3) interest attributable to investment of money in the fund;

 

(4) money received by the board and agency in the form of gifts, grants other than federal grants, reimbursements, or appropriations from any source intended to be used for the purposes of the fund;

 

(5) fees charged for the operation of the tank installer certification program established under section 116.491; and

 

(6) money obtained from the return of reimbursements, civil penalties, or other board action under this chapter; and

 

(7) the proceeds from the sales of all properties acquired by the agency under subdivision 4.

 

Sec. 26.  Minnesota Statutes 2009 Supplement, section 115C.08, subdivision 4, is amended to read:

 

Subd. 4.  Expenditures.  (a) Money in the fund may only be spent:

 

(1) to administer the petroleum tank release cleanup program established in this chapter;

 

(2) for agency administrative costs under sections 116.46 to 116.50, sections 115C.03 to 115C.06, and costs of corrective action taken by the agency under section 115C.03, including investigations;

 

(3) for costs of recovering expenses of corrective actions under section 115C.04;


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(4) for training, certification, and rulemaking under sections 116.46 to 116.50;

 

(5) for agency administrative costs of enforcing rules governing the construction, installation, operation, and closure of aboveground and underground petroleum storage tanks;

 

(6) for reimbursement of the environmental response, compensation, and compliance account under subdivision 5 and section 115B.26, subdivision 4;

 

(7) for administrative and staff costs as set by the board to administer the petroleum tank release program established in this chapter;

 

(8) for corrective action performance audits under section 115C.093;

 

(9) for contamination cleanup grants, as provided in paragraph (c); and

 

(10) to assess and remove abandoned underground storage tanks under section 115C.094 and, if a release is discovered, to pay for the specific consultant and contractor services costs necessary to complete the tank removal project, including, but not limited to, excavation soil sampling, groundwater sampling, soil disposal, and completion of an excavation report; and

 

(11) for property acquisition by the agency when the agency has determined that purchasing a property where a release has occurred is the most appropriate corrective action.  The acquisition of all properties is subject to approval by the board.

 

(b) Except as provided in paragraph (c), money in the fund is appropriated to the board to make reimbursements or payments under this section.

 

(c) $6,200,000 is annually appropriated from the fund to the commissioner of employment and economic development for contamination cleanup grants under section 116J.554.  Of this amount, the commissioner may spend up to $225,000 annually for administration of the contamination cleanup grant program.  The appropriation does not cancel and is available until expended.  The appropriation shall not be withdrawn from the fund nor the fund balance reduced until the funds are requested by the commissioner of employment and economic development.  The commissioner shall schedule requests for withdrawals from the fund to minimize the necessity to impose the fee authorized by subdivision 2.  Unless otherwise provided, the appropriation in this paragraph may be used for:

 

(1) project costs at a qualifying site if a portion of the cleanup costs are attributable to petroleum contamination or new and used tar and tar-like substances, including but not limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits in the earth or are distillates, fractions, or residues from the processing of petroleum crude or petroleum products as defined in section 296A.01; and

 

(2) the costs of performing contamination investigation if there is a reasonable basis to suspect the contamination is attributable to petroleum or new and used tar and tar-like substances, including but not limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits in the earth or are distillates, fractions, or residues from the processing of petroleum crude or petroleum products as defined in section 296A.01.

 

Sec. 27.  [325E.3891] CADMIUM IN CHILDREN'S JEWELRY. 

 

Subdivision 1.  Definitions.  (a) As used in this section, the term:

 

(1) "accessible" has the meaning given in section 3.1.2 of the ASTM International Safety Specification on Toy Safety, F-963;


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(2) "child" means an individual who is six years of age or younger; and

 

(3) "children's jewelry" shall have the meaning set forth in section 325E.389, subdivision 1, paragraph (c). 

 

Subd. 2.  Prohibitions.  Cadmium in any surface coating or accessible substrate material of metal or plastic components of children's jewelry shall not exceed 75 parts per million, as determined through solubility testing for heavy metals defined in the ASTM International Safety Specification on Toy Safety, ASTM standard F-963 and subsequent versions of this standard, if the product is sold in this state unless this requirement is superseded by a federal standard regulating cadmium in children's jewelry.  This section shall not regulate any product category for which an existing federal standard regulates cadmium exposure in surface coatings and accessible substrate materials as required under ASTM F-963.

 

Subd. 3.  Manufacturer or wholesaler.  No manufacturer or wholesaler may sell or offer for sale in this state children's jewelry that fails to meet the requirements of subdivision 2.

 

Subd. 4.  Retailer.  No retailer may sell or offer for sale in this state children's jewelry that fails to meet the requirements of subdivision 2.  This subdivision does not apply to sales or free distribution of jewelry by a nonprofit organization described in section 501(c)(3) of the Internal Revenue Code or to isolated and occasional sales of jewelry not made in the normal course of business.

 

Subd. 5.  Enforcement.  The attorney general shall enforce this section under section 8.31.

 

EFFECTIVE DATE.  This section is effective January 1, 2011, except that subdivision 4 is effective March 1, 2011.

 

Sec. 28.  APPROPRIATIONS. 

 

Subdivision 1.  Total appropriation.  $523,000 is appropriated from the general fund to the commissioner of commerce for the purposes indicated in the following subdivisions, to be available for the fiscal year ending June 30, 2011.

 

Subd. 2.  Mortgage originators and servicers.  $261,000 in fiscal year 2011 is appropriated from the general fund to the commissioner of commerce for implementing articles 4 and 5.  The base appropriation for this program is $138,000 in fiscal year 2012 and $142,000 in fiscal year 2013.

 

Subd. 3.  Appraisal management companies.  $223,000 in fiscal year 2011 is appropriated from the general fund to the commissioner of commerce for implementing sections 9 to 24.  The base appropriation for this program is $119,000 in fiscal year 2012 and $123,000 in fiscal year 2013.

 

Subd. 4.  Portable electronics insurance vendors.  $39,000 is to license vendors of portable electronics insurance.

 

ARTICLE 7

 

IRON RANGE RESOURCES

 

Section 1.  Laws 2010, chapter 216, section 58, is amended to read:

 

Sec. 58.  2010 DISTRIBUTIONS ONLY. 

 

For distributions in 2010 only, a special fund is established to receive 28.757 31.463 cents per ton that otherwise would be allocated under Minnesota Statutes, section 298.28, subdivision 6.  The following amounts are allocated to St. Louis County acting as the fiscal agent for the recipients for the specific purposes:


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(1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives for at least two dentists to establish dental practices in high-need areas of the taconite tax relief area;

 

(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal heat at the Olcott Park Greenhouse/Virginia Commons project;

 

(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety repairs at the Miners Memorial;

 

(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction of Highway 142/Grant and Park Avenues;

 

(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades and capital improvements to the public arena in Coleraine;

 

(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and pumphouse modifications;

 

(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial claims for water damage due to water and flood-related damage caused by the Canisteo Pit;

 

(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child care center;

 

(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades;

 

(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library project;

 

(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of water and sewer services for Lakewood Housing;

 

(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the Children's Museum;

 

(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil corrections.  This amount must be matched by local sources;

 

(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;

 

(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;

 

(16) 0.159 cent per ton must be paid to Aitkin County for a trail;

 

(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad crossing;

 

(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping of the community center parking lot;

 

(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;

 

(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements, milling, and overlay for Summit Street between Alaska Avenue and Highway 135;

 

(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main replacements and improvements in the Northeast Lower Alley area;


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(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz Road culvert;

 

(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon Street and associated infrastructure;

 

(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements at the Park Ridge development;

 

(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure and site preparation for its renewable and sustainable energy park;

 

(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer improvements;

 

(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding for the Summit Addition;

 

(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility improvements;

 

(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer infrastructure improvements;

 

(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer improvements;

 

(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge improvements and land purchase, provided that if the city sells or otherwise disposes of any of the land purchased with the money provided under this clause within a period of ten years after it was purchased, the city must transfer a portion of the proceeds of the sale equal to the amount of the purchase price paid from the money provided under this clause to the commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite environmental protection fund to be used for the purposes of the fund under Minnesota Statutes, section 298.223;

 

(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer improvements;

 

(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer improvements;

 

(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer improvements;

 

(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer improvements;

 

(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure improvements;

 

(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure improvements;

 

(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;

 

(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project infrastructure improvements;

 

(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety improvements at the athletic facility;

 

(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street improvements;


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(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure related to a housing development;

 

(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;

 

(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a nonprofit for a signage kiosk;

 

(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer lines and adjacent development near County State-Aid Highway 24; and

 

(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic wall infrastructure around the athletic complex.; and

 

(47) 2.706 cents per ton must be paid to the Virginia Regional Medical Center for operating room equipment and renovations.

 

EFFECTIVE DATE.  This section is effective for the 2010 distribution, all of which must be made in the August 2010 payment the day following final enactment.

 

EFFECTIVE DATE.  This section is effective retroactively from April 2, 2010.

 

Sec. 2.  GRANT AGREEMENT. 

 

The 2008 Producer Grant and Loan Fund Grant Agreement between the state of Minnesota acting through the office of the commissioner of Iron Range resources and rehabilitation and St. Louis County for "The Pike River Road Project" and "St. Louis County Maintenance Garage Project" shall remain in effect until the project is completed and all obligations set forth in the agreement have been satisfactorily fulfilled.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 3.  REVISOR'S INSTRUCTION. 

 

The revisor of statutes shall code section 1 as Minnesota Statutes, section 298.2961, subdivision 7.

 

Sec. 4.  REPEALER. 

 

Laws 2010, chapter 215, article 9, section 3, is repealed."

 

Delete the title and insert:

 

"A bill for an act relating to economic development; amending the definition of green economy to include the concept of green chemistry; creating a fast-action economic response team; expanding the Minnesota investment fund; removing a grant program restriction; expanding loan program to veteran-owned small businesses; creating the Minnesota Science and Technology Authority; providing for a comparative study of state laws affecting small business start-ups; modifying certain unemployment insurance administrative, benefit, and tax provisions; protecting customers from injuries resulting from use of inflatable play equipment; modifying labor and industry licensing and certain license fee provisions; modifying enforcement requirements of the State Building Code; modifying the requirements of the Manufactured Home Building Code; allowing expedited rulemaking; providing for licensing and regulation of individuals engaged in mortgage loan origination or mortgage loan business; providing for licensing and regulation of appraisal management companies; providing for property acquisition from petroleum tank fund proceeds; regulating cadmium in children's jewelry; regulating the sale and termination of portable electronics


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insurance; authorizing amendments to a municipal comprehensive plan for affordable housing; amending Iron Range resources provisions; requiring certain reports; appropriating money; amending Minnesota Statutes 2008, sections 58.04, subdivision 1; 58.08, by adding a subdivision; 58.09; 58.10, subdivision 1; 58.11; 60K.36, subdivision 2; 60K.38, subdivision 1; 82B.05, subdivision 5, by adding a subdivision; 82B.06; 115C.08, subdivision 1; 116J.437, subdivision 1; 116J.8731, subdivisions 1, 4; 116J.996; 116L.665, subdivisions 3, 6, by adding a subdivision; 136F.06, by adding a subdivision; 181.723, subdivision 5; 268.035, subdivision 20, by adding a subdivision; 268.046, subdivision 1; 268.051, subdivisions 2, 5, 7; 268.07, as amended; 268.085, subdivisions 9, 16; 268.095, subdivision 5; 268.101, by adding a subdivision; 268.184, subdivision 1; 326B.106, subdivision 9; 326B.133, subdivisions 1, 3, 8, 11, by adding subdivisions; 326B.16; 326B.197; 326B.33, subdivisions 18, 20, 21; 326B.42, by adding subdivisions; 326B.44; 326B.46, as amended; 326B.47; 326B.475, subdivision 2; 326B.50, by adding subdivisions; 326B.54; 326B.55, as amended; 326B.56, as amended; 326B.805, subdivision 6; 326B.83, subdivisions 1, 3, 6; 326B.865; 326B.921, subdivisions 2, 4, 7; 326B.922; 326B.978, subdivision 2, by adding a subdivision; 327.31, subdivision 17, by adding subdivisions; 327.32, subdivision 1, by adding subdivisions; 327.34, subdivision 1; 327B.04, subdivision 2; 363A.42, as added; 363A.43, as added; 462.355, subdivision 3; 469.1082, subdivision 5; 471.59, subdivision 10; Minnesota Statutes 2009 Supplement, sections 58.06, subdivision 2; 60K.55, subdivision 2; 82B.05, subdivision 1; 115C.08, subdivision 4; 116J.8731, subdivision 3; 268.035, subdivisions 19a, 23a; 268.052, subdivision 2; 268.053, subdivision 1; 268.085, subdivision 1; 268.095, subdivisions 2, 6; 268.105, subdivision 1; 268.136, subdivision 1; 326B.33, subdivision 19; 326B.475, subdivision 4; 326B.49, subdivision 1; 326B.58; 326B.815, subdivision 1; 326B.86, subdivision 1; 326B.94, subdivision 4; 326B.986, subdivision 5; 327B.04, subdivisions 7, 7a, 8; 327B.041; Laws 2009, chapter 78, article 1, section 3, subdivision 2; Laws 2010, chapter 216, section 58; proposing coding for new law in Minnesota Statutes, chapters 60K; 116J; 116L; 184B; 325E; 326B; proposing coding for new law as Minnesota Statutes, chapters 58A; 82C; 116W; repealing Minnesota Statutes 2008, sections 116J.657; 326B.133, subdivisions 9, 10; 326B.37, subdivision 13; 326B.475, subdivisions 5, 6; 326B.56, subdivision 3; 326B.885, subdivisions 3, 4; 326B.976; 327.32, subdivision 4; 327C.07, subdivisions 3a, 8; Minnesota Statutes 2009 Supplement, sections 58.126; 326B.56, subdivision 4; 326B.986, subdivision 2; Laws 2010, chapter 215, article 9, section 3; Minnesota Rules, parts 1301.0500; 1301.0900; 1301.1100, subparts 2, 3, 4; 1350.7200, subpart 3; 1350.8000, subpart 2."

 

 

We request the adoption of this report and repassage of the bill.

 

Senate Conferees:  David Tomassoni, Dan Sparks, Kathy Saltzman, Kenneth Kelash and Katie Sieben.

 

House Conferees:  Mike Obermueller, Tom Rukavina, Tim Mahoney, Larry Haws and Bob Gunther.

 

 

      Obermueller moved that the report of the Conference Committee on S. F. No. 2510 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

S. F. No. 2510, A bill for an act relating to economic development; amending the definition of green economy to include the concept of green chemistry; creating a fast-action economic response team; expanding the Minnesota investment fund; removing a grant program restriction; expanding loan program to veteran-owned small businesses; creating the Minnesota Science and Technology Authority; providing for a comparative study of state laws affecting small business start-ups; modifying certain unemployment insurance administrative, benefit, and tax provisions; protecting customers from injuries resulting from use of inflatable play equipment; modifying labor and industry licensing and certain license fee provisions; modifying enforcement requirements of the State Building Code; modifying the requirements of the Manufactured Home Building Code; allowing expedited rulemaking; providing for licensing and regulation of individuals engaged in mortgage loan origination or mortgage loan business; providing for licensing and regulation of appraisal management companies; providing for property acquisition from petroleum tank fund proceeds; clarifying requirements for granting additional cable franchises; regulating cadmium


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12281


 

in children's jewelry; regulating the sale and termination of portable electronics insurance; authorizing amendments to a municipal comprehensive plan for affordable housing; amending Iron Range resources provisions; requiring certain reports; appropriating money; amending Minnesota Statutes 2008, sections 58.04, subdivision 1; 58.08, by adding a subdivision; 58.09; 58.10, subdivision 1; 58.11; 60K.36, subdivision 2; 60K.38, subdivision 1; 82B.05, subdivision 5, by adding a subdivision; 82B.06; 115C.08, subdivision 1; 116J.437, subdivision 1; 116J.8731, subdivisions 1, 4; 116J.996; 181.723, subdivision 5; 238.08, subdivision 1; 268.035, subdivision 20; 268.046, subdivision 1; 268.051, subdivisions 2, 5, 7; 268.07, as amended; 268.085, subdivision 9; 326B.106, subdivision 9; 326B.133, subdivisions 1, 3, 8, 11, by adding subdivisions; 326B.16; 326B.197; 326B.33, subdivisions 18, 20, 21; 326B.42, by adding subdivisions; 326B.44; 326B.46, as amended; 326B.47; 326B.475, subdivision 2; 326B.50, by adding subdivisions; 326B.54; 326B.55, as amended if enacted; 326B.56, as amended; 326B.805, subdivision 6; 326B.83, subdivisions 1, 3, 6; 326B.865; 326B.921, subdivisions 2, 4, 7; 326B.922; 326B.978, subdivision 2, by adding a subdivision; 327.31, subdivision 17, by adding subdivisions; 327.32, subdivision 1, by adding subdivisions; 327B.04, subdivision 2; 462.355, subdivision 3; Minnesota Statutes 2009 Supplement, sections 58.06, subdivision 2; 60K.55, subdivision 2; 82B.05, subdivision 1; 115C.08, subdivision 4; 116J.8731, subdivision 3; 116L.20, subdivision 1; 268.035, subdivision 19a; 268.052, subdivision 2; 268.053, subdivision 1; 268.085, subdivision 1; 268.136, subdivision 1; 326B.33, subdivision 19; 326B.475, subdivision 4; 326B.49, subdivision 1; 326B.58; 326B.815, subdivision 1; 326B.86, subdivision 1; 326B.94, subdivision 4; 326B.986, subdivision 5; 327B.04, subdivisions 7, 7a, 8; 327B.041; Laws 2009, chapter 78, article 1, section 3, subdivision 2; Laws 2010, chapter 216, section 58; proposing coding for new law in Minnesota Statutes, chapters 60K; 116J; 184B; 325E; 326B; proposing coding for new law as Minnesota Statutes, chapters 58A; 82C; 116W; repealing Minnesota Statutes 2008, sections 116J.657; 326B.133, subdivisions 9, 10; 326B.37, subdivision 13; 326B.475, subdivisions 5, 6; 326B.56, subdivision 3; 326B.885, subdivisions 3, 4; 326B.976; 327.32, subdivision 4; 327C.07, subdivisions 3, 3a, 8; Minnesota Statutes 2009 Supplement, sections 58.126; 326B.56, subdivision 4; Laws 2010, chapter 215, article 9, section 3; Minnesota Rules, parts 1301.0500; 1301.0900; 1301.1100, subparts 2, 3, 4; 1350.7200, subpart 3; 1350.8000, subpart 2.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 91 yeas and 42 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Carlson

Champion

Clark

Cornish

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Gunther

Hansen

Hausman

Haws

Hayden

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Winkler

Spk. Kelliher



Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12282


 

      Those who voted in the negative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Bunn

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Hackbarth

Hamilton

Holberg

Hoppe

Kath

Kelly

Kiffmeyer

Kohls

Lanning

Loon

Mack

Magnus

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Torkelson

Urdahl

Welti

Westrom

Zellers


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

Madam Speaker:

 

      I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

 

      S. F. No. 2695.

 

      The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said Senate File is herewith transmitted to the House.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 2695

 

A bill for an act relating to health; modifying mandatory reporting requirements related to pregnant women; amending Minnesota Statutes 2008, section 626.5561, subdivision 1.

 

May 8, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 2695 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendment and that S. F. No. 2695 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2008, section 626.5561, subdivision 1, is amended to read:

 

Subdivision 1.  Reports required.  (a) Except as provided in paragraph (b), a person mandated to report under section 626.556, subdivision 3, shall immediately report to the local welfare agency if the person knows or has reason to believe that a woman is pregnant and has used a controlled substance for a nonmedical purpose during the pregnancy, including, but not limited to, tetrahydrocannabinol, or has consumed alcoholic beverages during the pregnancy in any way that is habitual or excessive. 


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12283


 

(b) A health care professional or a social service professional who is mandated to report under section 626.556, subdivision 3, is exempt from reporting under paragraph (a) a woman's use or consumption of tetrahydrocannabinol or alcoholic beverages during pregnancy if the professional is providing the woman with prenatal care or other healthcare services.

 

(c) Any person may make a voluntary report if the person knows or has reason to believe that a woman is pregnant and has used a controlled substance for a nonmedical purpose during the pregnancy, including, but not limited to, tetrahydrocannabinol, or has consumed alcoholic beverages during the pregnancy in any way that is habitual or excessive.  An oral report shall be made immediately by telephone or otherwise.  An oral report made by a person required to report shall be followed within 72 hours, exclusive of weekends and holidays, by a report in writing to the local welfare agency.  Any report shall be of sufficient content to identify the pregnant woman, the nature and extent of the use, if known, and the name and address of the reporter. 

 

(d) For purposes of this section, "prenatal care" means the comprehensive package of medical and psychological support provided throughout the pregnancy."

 

 

We request the adoption of this report and repassage of the bill.

 

Senate Conferees:  Kathy Sheran, Linda Higgins and Julianne Ortman.

 

House Conferees:  Maria Ruud, Debra Hilstrom and Jim Abeler.

 

 

      Ruud moved that the report of the Conference Committee on S. F. No. 2695 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

S. F. No. 2695, A bill for an act relating to health; modifying mandatory reporting requirements related to pregnant women; amending Minnesota Statutes 2008, section 626.5561, subdivision 1.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 119 yeas and 14 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dill

Dittrich

Doepke

Doty

Downey

Eastlund

Eken

Falk

Faust

Fritz

Gardner

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12284


 

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Dettmer

Drazkowski

Emmer

Garofalo

Holberg

Hoppe

Kohls

Lanning

Peppin

Scott

Seifert

Severson

Shimanski


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

Madam Speaker:

 

      I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

 

      S. F. No. 3147.

 

      The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said Senate File is herewith transmitted to the House.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 3147

 

A bill for an act relating to health occupation; requiring license revocation for chiropractors convicted of a felony-level criminal sexual conduct offense; amending Minnesota Statutes 2008, sections 148.10, by adding a subdivision; 364.09.

 

May 7, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 3147 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendments and that S. F. No. 3147 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2008, section 148.10, is amended by adding a subdivision to read:

 

Subd. 7.  Conviction of a felony-level criminal sexual conduct offense.  (a) Except as provided in paragraph (e), the board shall not grant or renew a license to practice chiropractic to any person who has been convicted on or after August 1, 2010, of any of the provisions of sections 609.342, subdivision 1, 609.343, subdivision 1, 609.344, subdivision 1, paragraphs (c) to (o), or 609.345, subdivision 1, paragraphs (b) to (o).


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12285


 

(b) A license to practice chiropractic is automatically revoked if the licensee is convicted of an offense listed in paragraph (a) of this section.

 

(c) A license to practice chiropractic that has been denied or revoked under this subdivision is not subject to chapter 364.

 

(d) For purposes of this subdivision, "conviction" means a plea of guilty, a verdict of guilty by a jury, or a finding of guilty by the court, unless the court stays imposition or execution of the sentence and final disposition of the case is accomplished at a nonfelony level.

 

(e) The board may establish criteria whereby an individual convicted of an offense listed in paragraph (a) of this subdivision may become licensed provided that the criteria:

 

(1) utilize a rebuttable presumption that the applicant is not suitable for licensing or credentialing;

 

(2) provide a standard for overcoming the presumption; and

 

(3) require that a minimum of ten years has elapsed since the applicant was released from any incarceration or supervisory jurisdiction related to the offense.

 

The board shall not consider an application under this paragraph if the board determines that the victim involved in the offense was a patient or a client of the applicant at the time of the offense.

 

EFFECTIVE DATE.  This section is effective for new licenses issued on or after August 1, 2010.

 

Sec. 2.  Minnesota Statutes 2008, section 364.09, is amended to read:

 

364.09 EXCEPTIONS. 

 

(a) This chapter does not apply to the licensing process for peace officers; to law enforcement agencies as defined in section 626.84, subdivision 1, paragraph (f); to fire protection agencies; to eligibility for a private detective or protective agent license; to the licensing and background study process under chapters 245A and 245C; to eligibility for school bus driver endorsements; to eligibility for special transportation service endorsements; to eligibility for a commercial driver training instructor license, which is governed by section 171.35 and rules adopted under that section; to emergency medical services personnel, or to the licensing by political subdivisions of taxicab drivers, if the applicant for the license has been discharged from sentence for a conviction within the ten years immediately preceding application of a violation of any of the following: 

 

(1) sections 609.185 to 609.21, 609.221 to 609.223, 609.342 to 609.3451, or 617.23, subdivision 2 or 3;

 

(2) any provision of chapter 152 that is punishable by a maximum sentence of 15 years or more; or

 

(3) a violation of chapter 169 or 169A involving driving under the influence, leaving the scene of an accident, or reckless or careless driving.

 

This chapter also shall not apply to eligibility for juvenile corrections employment, where the offense involved child physical or sexual abuse or criminal sexual conduct.

 

(b) This chapter does not apply to a school district or to eligibility for a license issued or renewed by the Board of Teaching or the commissioner of education.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12286


 

(c) Nothing in this section precludes the Minnesota Police and Peace Officers Training Board or the state fire marshal from recommending policies set forth in this chapter to the attorney general for adoption in the attorney general's discretion to apply to law enforcement or fire protection agencies.

 

(d) This chapter does not apply to a license to practice medicine that has been denied or revoked by the Board of Medical Practice pursuant to section 147.091, subdivision 1a. 

 

(e) This chapter does not apply to any person who has been denied a license to practice chiropractic or whose license to practice chiropractic has been revoked by the board in accordance with section 148.10, subdivision 7.

 

EFFECTIVE DATE.  This section is effective for new licenses issued on or after August 1, 2010.

 

Sec. 3.  COUNCIL OF HEALTH BOARDS. 

 

The Council of Health Boards established in section 214.025 shall review the statutory provisions of sections 148.10, subdivision 7, and 364.09, paragraph (e), and make recommendations to the house of representatives and senate legislative committees with jurisdiction over licensing health-related occupations regarding the impact of similar legislation on the health-related licensing boards.  The commissioner of health or a designee shall participate in this review.  The recommendations shall be submitted no later than January 15, 2011, and include any proposed legislation.

 

EFFECTIVE DATE.  This section is effective the day following final enactment."

 

Amend the title as follows:

 

Page 1, line 3, after the semicolon, insert "requiring a report;"

 

 

      We request the adoption of this report and repassage of the bill.

 

      Senate Conferees:  Sharon Erickson Ropes, Mike Parry and Mary Olson.

 

      House Conferees:  Gail Kulick Jackson, Carolyn Laine and Jim Abeler.

 

 

      Jackson moved that the report of the Conference Committee on S. F. No. 3147 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

      S. F. No. 3147, A bill for an act relating to health occupation; requiring license revocation for chiropractors convicted of a felony-level criminal sexual conduct offense; amending Minnesota Statutes 2008, sections 148.10, by adding a subdivision; 364.09.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 133 yeas and 0 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12287


 

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

Madam Speaker:

 

      I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

 

      S. F. No. 1060.

 

      The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said Senate File is herewith transmitted to the House.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 1060

 

A bill for an act relating to transportation; modifying management, priorities, research, and planning provisions related to Department of Transportation; requiring reports; amending Minnesota Statutes 2008, sections 161.53; 165.03, by adding a subdivision; 174.02, subdivision 1a; 174.03, subdivision 1a, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 167.

 

May 10, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 1060 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendments and that S. F. No. 1060 be further amended as follows:


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12288


 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2008, section 161.53, is amended to read:

 

161.53 RESEARCH ACTIVITIES. 

 

(a) The commissioner may set aside in each fiscal year up to two percent of the total amount of all funds appropriated to the commissioner other than county state-aid and municipal state-aid highway funds for transportation research including public and private research partnerships.  The commissioner shall spend this money for (1) research to improve the design, construction, maintenance, management, and environmental compatibility of transportation systems, including research into and implementation of innovations in bridge-monitoring technology and bridge inspection technology; bridge inspection techniques and best practices; and the cost-effectiveness of deferred or lower cost highway and bridge design and maintenance activities and their impacts on long-term trunk highway costs and maintenance needs; (2) research on transportation policies that enhance energy efficiency and economic development; (3) programs for implementing and monitoring research results; and (4) development of transportation education and outreach activities. 

 

(b) Of all funds appropriated to the commissioner other than state-aid funds, the commissioner shall spend at least 0.1 percent, but not exceeding $1,200,000 in any fiscal year, for research and related activities performed by the Center for Transportation Studies of the University of Minnesota.  The center shall establish a technology transfer and training center for Minnesota transportation professionals. 

 

Sec. 2.  Minnesota Statutes 2008, section 165.03, is amended by adding a subdivision to read:

 

Subd. 8.  Biennial report on bridge inspection quality assurance.  By February 1 of each odd-numbered year, the commissioner shall submit a report electronically to the members of the senate and house of representatives committees with jurisdiction over transportation policy and finance concerning quality assurance for bridge inspections.  At a minimum, the report must:

 

(1) summarize the bridge inspection quality assurance and quality control procedures used in Minnesota;

 

(2) identify any substantive changes to quality assurance and quality control procedures made in the previous two years;

 

(3) summarize and provide a briefing on findings from bridge inspection quality reviews performed in the previous two years;

 

(4) identify actions taken and planned in response to findings from bridge inspection quality reviews performed in the previous two years;

 

(5) summarize the results of any bridge inspection compliance review by the Federal Highway Administration; and

 

(6) identify actions in response to the Federal Highway Administration compliance review taken by the department in order to reach full compliance.

 

Sec. 3.  [167.60] DEBT-FINANCING MANAGEMENT POLICY. 

 

(a) By July 1, 2010, the commissioner shall develop a debt-financing management policy for trunk highway bonds, federal advanced construction funds, and other forms of highway financing based on debt or future repayment.  The policy must be used by the department to guide decision making related to debt financing.  The commissioner may update the policy as necessary.  In developing and updating the policy, the commissioner shall consult with the commissioner of management and budget and the chairs and ranking minority members of the senate and house of representatives committees with jurisdiction over transportation finance.


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(b) The debt-financing management policy must address relevant financial issues, including, but not limited to:

 

(1) limits on cumulative amounts of debt for the trunk highway system from all state and federal sources;

 

(2) eligibility of projects for debt-financing funds;

 

(3) allocation and use of funds;

 

(4) terms of debt service and methods of repayment;

 

(5) management of trunk highway fund balance impacts; and

 

(6) mitigation of risks from different forms of debt financing.

 

(c) Upon creation or formal revision of the debt-financing management policy, the commissioner shall distribute electronic copies to the members of the senate and house of representatives committees with jurisdiction over transportation finance, and as required for reports to the legislature under section 3.195, subdivision 1.

 

Sec. 4.  Minnesota Statutes 2008, section 174.02, subdivision 1a, is amended to read:

 

Subd. 1a.  Mission; efficiency; legislative report, recommendations.  It is part of the department's mission that within the department's resources the commissioner shall endeavor to: 

 

(1) prevent the waste or unnecessary spending of public money;

 

(2) use innovative fiscal and human resource practices to manage the state's resources and operate the department as efficiently as possible;

 

(3) minimize the degradation of air and water quality;

 

(4) coordinate the department's activities wherever appropriate with the activities of other governmental agencies;

 

(5) use technology where appropriate to increase agency productivity, improve customer service, increase public access to information about government, and increase public participation in the business of government;

 

(6) utilize constructive and cooperative labor-management practices to the extent otherwise required by chapters 43A and 179A;

 

(7) ensure that the safety, maintenance, and preservation of Minnesota's transportation infrastructure is a primary priority;

 

(8) report to the legislature on the performance of agency operations and the accomplishment of agency goals in the agency's biennial budget according to section 16A.10, subdivision 1; and

 

(8) (9) recommend to the legislature appropriate changes in law necessary to carry out the mission and improve the performance of the department. 

 

Sec. 5.  Minnesota Statutes 2008, section 174.02, is amended by adding a subdivision to read:

 

Subd. 8.  Electronic reports.  For any legislative report required to be submitted by the commissioner by law, in which the report may or must be submitted electronically, the commissioner shall meet the requirements under section 3.195, subdivision 1.


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Sec. 6.  Minnesota Statutes 2008, section 174.03, subdivision 1a, is amended to read:

 

Subd. 1a.  Revision of state statewide multimodal transportation plan.  (a) The commissioner shall revise the state statewide multimodal transportation plan by January 1 15, 1996, January 1, 2000, and, if the requirements of clauses (1) and (2) have been met in the previous revision 2013, and by January 1 15 of every third even-numbered year four years thereafter.  Before final adoption of a revised plan, the commissioner shall hold a hearing to receive public comment on the preliminary draft of the revised plan. 

 

The (b) Each revised state statewide multimodal transportation plan must:

 

(1) incorporate the goals of the state transportation system in section 174.01; and

 

(2) establish objectives, policies, and strategies for achieving those goals.; and

 

(3) identify performance targets for measuring progress and achievement of transportation system goals, objectives, or policies.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 7.  Minnesota Statutes 2008, section 174.03, is amended by adding a subdivision to read:

 

Subd. 1c.  Statewide highway 20-year capital investment plan.  By January 15, 2013, and in conjunction with each future revision of the statewide multimodal transportation plan, the commissioner shall prepare a 20-year statewide highway capital investment plan that:

 

(1) incorporates performance measures and targets for assessing progress and achievement of the state's transportation goals, objectives, and policies identified in this chapter for the state trunk highway system, and those goals, objectives, and policies established in the statewide multimodal transportation plan.  Performance targets must be based on objectively verifiable measures, and address, at a minimum, preservation and maintenance of the structural condition of state highway bridges and pavements, safety, and mobility;

 

(2) summarizes trends and impacts for each performance target over the past five years;

 

(3) summarizes the amount and analyzes the impact of the department's capital investments and priorities over the past five years on each performance target, including a comparison of prior plan projected costs with actual costs;

 

(4) identifies the investments required to meet the established performance targets over the next 20-year period;

 

(5) projects available state and federal funding over the 20-year period, including any unique, competitive, time-limited, or focused funding opportunities;

 

(6) identifies strategies to ensure the most efficient use of existing transportation infrastructure, and to maximize the performance benefits of projected available funding;

 

(7) establishes investment priorities for projected funding, including a schedule of major projects or improvement programs for the 20-year period together with projected costs and impact on performance targets; and

 

(8) identifies those performance targets identified under clause (1) not expected to meet the target outcome over the 20-year period together with alternative strategies that could be implemented to meet the targets.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.


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Sec. 8.  [174.93] GUIDEWAY INVESTMENT. 

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given:

 

(1) "commissioner" means the commissioner of transportation; and

 

(2) "guideway" means a form of transportation service provided to the public on a regular and ongoing basis, that operates on exclusive or controlled rights-of-way or rails in whole or in part, and includes each line for intercity passenger rail, commuter rail, light rail transit, streetcars, and bus rapid transit.

 

(b) For purposes of this section, "sources of funds" includes, but is not limited to, money from federal aid, state appropriations, the Metropolitan Council, special taxing districts, local units of government, fare box recovery, and nonpublic sources.

 

Subd. 2.  Legislative report.  (a) By November 15 in every odd-numbered year, the commissioner shall prepare, in collaboration with the Metropolitan Council, and submit a report electronically to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over transportation policy and finance concerning the status of guideway projects (1) currently in study, planning, development, or construction; (2) identified in the transportation policy plan under section 473.146; or (3) identified in the comprehensive statewide freight and passenger rail plan under section 174.03, subdivision 1b.

 

(b) At a minimum, the report must include, for each guideway project:

 

(1) a brief description of the project, including projected ridership;

 

(2) a summary of the overall status and current phase of the project;

 

(3) a timeline that includes (i) project phases or milestones; (ii) expected and known dates of commencement of each phase or milestone; and (iii) expected and known dates of completion of each phase or milestone;

 

(4) a brief progress update on specific project phases or milestones completed since the last previous submission of a report under this subdivision; and

 

(5) a summary financial plan that identifies, to the extent available:

 

(i) capital expenditures, including expenditures to date and total projected expenditures, with a breakdown by committed and proposed sources of funds for the project; and

 

(ii) estimated annual operations and maintenance expenditures reflecting the level of detail available in the current phase of the project development, with a breakdown by committed and proposed sources of funds for the projects in the Metropolitan Council's transportation policy plan.

 

Sec. 9.  REPORT ON DEPARTMENT OF TRANSPORTATION MANAGEMENT CHANGES. 

 

(a) By February 1, 2011, the commissioner of transportation shall submit a report electronically to the members of the senate and house of representatives committees with jurisdiction over transportation policy and finance concerning recent changes in the department's organizational structure, internal procedures and practices, and anticipated budget.  The report must include, but is not limited to:

 

(1) a summary and review of the department organizational structure for bridge management, maintenance, and inspections, including a brief explanation of any relevant structural or organizational changes made since August 1, 2007;


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(2) an analysis of the division of bridge-related duties and decision-making responsibilities between districts and central administration;

 

(3) a summary of current agency procedures and processes, and any changes made since August 1, 2007, related to:

 

(i) initiation of bridge re-rating and use of bridge inspection findings in the re-rating process;

 

(ii) implementation of agencywide standards for documenting bridge inspection findings and decision making for postinspection bridge maintenance; and

 

(iii) other changes designed to ensure or enhance the safety of Minnesota's transportation infrastructure; and

 

(4) a budget analysis of anticipated funding and funding allocations for pavement preservation and highway maintenance, safety projects, mobility enhancement projects, and highway and bridge construction, for fiscal years 2012 through 2018, including a discussion of any anticipated budgetary challenges or risks.

 

(b) In addition to an electronic report, the commissioner shall prepare a summary of findings from the report for distribution and oral testimony to the chairs of the senate and house of representatives committees with jurisdiction over transportation finance, who shall make every reasonable effort to arrange testimony from the department during the 2011 legislative session."

 

Delete the title and insert:

 

"A bill for an act relating to transportation; modifying management, priorities, research, and planning provisions related to Department of Transportation; requiring reports; amending Minnesota Statutes 2008, sections 161.53; 165.03, by adding a subdivision; 174.02, subdivision 1a, by adding a subdivision; 174.03, subdivision 1a, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters 167; 174."

 

 

We request the adoption of this report and repassage of the bill.

 

Senate Conferees:  D. Scott Dibble, Kathy Saltzman and Joe Gimse.

 

House Conferees:  Melissa Hortman, Frank Hornstein and Carol McFarlane.

 

 

      Hortman moved that the report of the Conference Committee on S. F. No. 1060 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

S. F. No. 1060, A bill for an act relating to transportation; modifying management, priorities, research, and planning provisions related to Department of Transportation; requiring reports; amending Minnesota Statutes 2008, sections 161.53; 165.03, by adding a subdivision; 174.02, subdivision 1a; 174.03, subdivision 1a, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 167.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.


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      The question was taken on the repassage of the bill and the roll was called.  There were 133 yeas and 0 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

Madam Speaker:

 

      I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

 

      S. F. No. 2540.

 

      The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said Senate File is herewith transmitted to the House.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 2540

 

A bill for an act relating to transportation; modifying or adding provisions relating to truck insurance, school bus transportation, transportation construction impacts on business, rest areas, highways, bridges, transportation contracts, variances from rules and engineering standards for local streets and highways, the state park road account, tax-exempt vehicles, license plates, deputy registrars, vehicles and drivers, impounds, towing, pedestrians, intersection gridlock, bus and type III vehicle operation, various traffic regulations, cargo tank vehicle weight exemptions, drivers' licenses, transportation department goals and mission, the Disadvantaged Business Enterprise Collaborative, a Minnesota Council of Transportation Access, complete streets, a Commuter Rail Corridor Coordinating Committee, railroad track safety, motor carriers, allocation of traffic fines, airport authorities, property


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acquisition for highways, transit, town road interest extinguishment nullification, Northstar commuter rail, and roundabouts design; providing for State Patrol tax compliance and vehicle crimes investigations; providing for issuance and sale of trunk highway bonds; requiring reports; making technical and clarifying changes; appropriating money; amending Minnesota Statutes 2008, sections 65B.43, subdivision 2; 161.14, by adding subdivisions; 161.3426, subdivision 3, by adding a subdivision; 162.02, subdivision 3a; 162.09, subdivision 3a; 165.14, subdivisions 4, 5; 168.12, subdivisions 2a, 2b, by adding a subdivision; 168.123, subdivisions 1, 2; 168.1255, subdivision 1; 168.1291, subdivisions 1, 2; 168.33, subdivision 2; 168B.04, subdivision 2; 168B.06, subdivision 1; 168B.07, subdivision 3; 169.041, subdivision 5; 169.09, subdivision 5a; 169.15; 169.26, by adding a subdivision; 169.306; 169.79, subdivision 3; 169.87, by adding a subdivision; 169.92, subdivision 4; 171.321, subdivision 2; 174.01, subdivisions 1, 2; 174.02, subdivision 1a; 174.86, subdivision 5; 219.01; 221.012, subdivision 38, by adding a subdivision; 221.0252, subdivision 7; 221.036, subdivisions 1, 3; 221.221, subdivision 3; 221.251, subdivision 1; 360.061, subdivision 3; 473.167, subdivision 2a; 473.411, subdivision 5; 514.18, subdivision 1a; Minnesota Statutes 2009 Supplement, sections 123B.92, subdivision 1; 160.165; 161.14, subdivision 62; 162.06, subdivision 5; 168.012, subdivision 1; 168.12, subdivision 5; 169.71, subdivision 1; 169.865, subdivision 1; 171.02, subdivision 2b; 174.66; 221.026, subdivision 2; 221.031, subdivision 1; 221.122, subdivision 1; 299D.03, subdivision 5; Laws 2008, chapter 287, article 1, section 122; Laws 2009, chapter 36, article 1, sections 1; 3, subdivisions 1, 2, 3; 5, subdivisions 1, 3, 4; proposing coding for new law in Minnesota Statutes, chapters 160; 168; 174; 221; 383D; repealing Minnesota Statutes 2008, sections 169.041, subdivisions 3, 4; 221.161, subdivisions 2, 3; 221.291, subdivision 5; Minnesota Statutes 2009 Supplement, sections 221.161, subdivisions 1, 4; 221.171; Minnesota Rules, parts 7805.0300; 7805.0400.

 

May 8, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 2540 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendments and that S. F. No. 2540 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2009 Supplement, section 123B.92, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  For purposes of this section and section 125A.76, the terms defined in this subdivision have the meanings given to them.

 

(a) "Actual expenditure per pupil transported in the regular and excess transportation categories" means the quotient obtained by dividing:

 

(1) the sum of:

 

(i) all expenditures for transportation in the regular category, as defined in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus

 

(ii) an amount equal to one year's depreciation on the district's school bus fleet and mobile units computed on a straight line basis at the rate of 15 percent per year for districts operating a program under section 124D.128 for grades 1 to 12 for all students in the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus


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(iii) an amount equal to one year's depreciation on the district's type III vehicles, as defined in section 169.011, subdivision 71, which must be used a majority of the time for pupil transportation purposes, computed on a straight line basis at the rate of 20 percent per year of the cost of the type three school buses by:

 

(2) the number of pupils eligible for transportation in the regular category, as defined in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).

 

(b) "Transportation category" means a category of transportation service provided to pupils as follows:

 

(1) Regular transportation is:

 

(i) transportation to and from school during the regular school year for resident elementary pupils residing one mile or more from the public or nonpublic school they attend, and resident secondary pupils residing two miles or more from the public or nonpublic school they attend, excluding desegregation transportation and noon kindergarten transportation; but with respect to transportation of pupils to and from nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;

 

(ii) transportation of resident pupils to and from language immersion programs;

 

(iii) transportation of a pupil who is a custodial parent and that pupil's child between the pupil's home and the child care provider and between the provider and the school, if the home and provider are within the attendance area of the school;

 

(iv) transportation to and from or board and lodging in another district, of resident pupils of a district without a secondary school; and

 

(v) transportation to and from school during the regular school year required under subdivision 3 for nonresident elementary pupils when the distance from the attendance area border to the public school is one mile or more, and for nonresident secondary pupils when the distance from the attendance area border to the public school is two miles or more, excluding desegregation transportation and noon kindergarten transportation.

 

For the purposes of this paragraph, a district may designate a licensed day care facility, school day care facility, respite care facility, the residence of a relative, or the residence of a person chosen by the pupil's parent or guardian, or an after school program for children operated by a political subdivision of the state, as the home of a pupil for part or all of the day, if requested by the pupil's parent or guardian, and if that facility or, residence, or program is within the attendance area of the school the pupil attends.

 

(2) Excess transportation is:

 

(i) transportation to and from school during the regular school year for resident secondary pupils residing at least one mile but less than two miles from the public or nonpublic school they attend, and transportation to and from school for resident pupils residing less than one mile from school who are transported because of extraordinary traffic, drug, or crime hazards; and

 

(ii) transportation to and from school during the regular school year required under subdivision 3 for nonresident secondary pupils when the distance from the attendance area border to the school is at least one mile but less than two miles from the public school they attend, and for nonresident pupils when the distance from the attendance area border to the school is less than one mile from the school and who are transported because of extraordinary traffic, drug, or crime hazards.


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(3) Desegregation transportation is transportation within and outside of the district during the regular school year of pupils to and from schools located outside their normal attendance areas under a plan for desegregation mandated by the commissioner or under court order.

 

(4) "Transportation services for pupils with disabilities" is:

 

(i) transportation of pupils with disabilities who cannot be transported on a regular school bus between home or a respite care facility and school;

 

(ii) necessary transportation of pupils with disabilities from home or from school to other buildings, including centers such as developmental achievement centers, hospitals, and treatment centers where special instruction or services required by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district where services are provided;

 

(iii) necessary transportation for resident pupils with disabilities required by sections 125A.12, and 125A.26 to 125A.48;

 

(iv) board and lodging for pupils with disabilities in a district maintaining special classes;

 

(v) transportation from one educational facility to another within the district for resident pupils enrolled on a shared-time basis in educational programs, and necessary transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils with disabilities who are provided special instruction and services on a shared-time basis or if resident pupils are not transported, the costs of necessary travel between public and private schools or neutral instructional sites by essential personnel employed by the district's program for children with a disability;

 

(vi) transportation for resident pupils with disabilities to and from board and lodging facilities when the pupil is boarded and lodged for educational purposes; and

 

(vii) services described in clauses (i) to (vi), when provided for pupils with disabilities in conjunction with a summer instructional program that relates to the pupil's individual education plan or in conjunction with a learning year program established under section 124D.128.

 

For purposes of computing special education initial aid under section 125A.76, subdivision 2, the cost of providing transportation for children with disabilities includes (A) the additional cost of transporting a homeless student from a temporary nonshelter home in another district to the school of origin, or a formerly homeless student from a permanent home in another district to the school of origin but only through the end of the academic year; and (B) depreciation on district-owned school buses purchased after July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated according to paragraph (a), clauses (ii) and (iii).  Depreciation costs included in the disabled transportation category must be excluded in calculating the actual expenditure per pupil transported in the regular and excess transportation categories according to paragraph (a).

 

(5) "Nonpublic nonregular transportation" is:

 

(i) transportation from one educational facility to another within the district for resident pupils enrolled on a shared-time basis in educational programs, excluding transportation for nonpublic pupils with disabilities under clause (4);

 

(ii) transportation within district boundaries between a nonpublic school and a public school or a neutral site for nonpublic school pupils who are provided pupil support services pursuant to section 123B.44; and

 

(iii) late transportation home from school or between schools within a district for nonpublic school pupils involved in after-school activities.


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(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for educational programs and services, including diagnostic testing, guidance and counseling services, and health services.  A mobile unit located off nonpublic school premises is a neutral site as defined in section 123B.41, subdivision 13.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 2.  Minnesota Statutes 2009 Supplement, section 160.165, is amended to read:

 

160.165 MITIGATING TRANSPORTATION CONSTRUCTION IMPACTS ON BUSINESS. 

 

Subdivision 1.  Definitions.  For the purposes of this section, the following terms have the meanings given:

 

(1) "project" means construction work to maintain, construct, reconstruct, or improve a street or highway or for a rail transit project;

 

(2) "substantial business impacts" means impairment of road access, parking, or visibility for one or more business establishments as a result of a project, for a minimum period of one month; and

 

(3) "transportation authority" means the commissioner, as to trunk highways; the county board, as to county state-aid highways and county highways; the town board, as to town roads; and statutory or home rule charter cities, as to city streets; the Metropolitan Council, for rail transit projects located entirely within the metropolitan area as defined in section 473.121, subdivision 2; and the commissioner, for all other rail transit projects.

 

Subd. 2.  Business liaison.  (a) Before beginning construction work on a project, a transportation authority shall identify whether the project is anticipated to include substantial business impacts.  For such projects, the transportation authority shall designate an individual to serve as business liaison between the transportation authority and affected businesses.

 

(b) The business liaison shall consult with affected businesses before and during construction to investigate means of mitigating project impacts to businesses.  The mitigation considered must include signage.  The business liaison shall provide information to the identified businesses before and during construction, concerning project duration and timetables, lane and road closures, detours, access impacts, customer parking impacts, visibility, noise, dust, vibration, and public participation opportunities.

 

Subd. 3.  Exception.  This section does not apply to construction work in connection with the Central Corridor light rail transit line that will connect downtown Minneapolis and downtown St. Paul.

 

EFFECTIVE DATE.  Subdivision 1 is effective July 1, 2012.  Subdivision 3 is effective July 1, 2010.

 

Sec. 3.  [160.2755] PROHIBITED ACTIVITIES AT REST AREAS. 

 

Subdivision 1.  Prohibited activities.  It is unlawful at rest areas to:

 

(1) dispose of travel-related trash and rubbish, except if depositing it in a designated receptacle;

 

(2) dump household or commercial trash and rubbish into containers or anywhere else on site; or

 

(3) drain or dump refuse or waste from any trailer, recreational vehicle, or other vehicle except where receptacles are provided and designated to receive the refuse or waste.

 

Subd. 2.  Penalty.  Violation of this section is a petty misdemeanor.

 

EFFECTIVE DATE.  This section is effective August 1, 2010, and applies to acts committed on or after that date.


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Sec. 4.  Minnesota Statutes 2009 Supplement, section 161.14, subdivision 62, is amended to read:

 

Subd. 62.  Clearwater County Veterans Memorial Highway.  (a) The following described route is designated the "Clearwater County Veterans Memorial Highway":  that portion of Legislative Route No. 168, marked on August 1, 2009, as Trunk Highway 200, from its intersection with Clearwater County State-Aid Highway 37 39 to its intersection with Legislative Route No. 169, marked on August 1, 2009, as Trunk Highway 92; and that portion of Route No. 169 to its intersection with Clearwater County State-Aid Highway 5.

 

(b) The commissioner shall adopt a suitable marking design to mark this highway and erect appropriate signs, subject to section 161.139.

 

Sec. 5.  Minnesota Statutes 2008, section 161.14, is amended by adding a subdivision to read:

 

Subd. 64.  Veterans Memorial Highway.  Legislative Route No. 31, signed as Trunk Highway 200 as of the effective date of this section, from the border with North Dakota to the city of Mahnomen, is designated as the "Veterans Memorial Highway." The commissioner shall adopt a suitable design to mark this highway and erect appropriate signs, subject to section 161.139.

 

Sec. 6.  Minnesota Statutes 2008, section 161.14, is amended by adding a subdivision to read:

 

Subd. 65.  Becker County Veterans Memorial Highway.  Marked Trunk Highway 34, from its intersection with Washington Avenue in Detroit Lakes to its intersection with County State-Aid Highway 39; and marked Trunk Highway 87, from its intersection with County State-Aid Highway 33 to its intersection with County State-Aid Highway 39, is named and designated the "Becker County Veterans Memorial Highway." Subject to section 161.139, the commissioner shall adopt a suitable marking design to mark this highway and erect appropriate signs.

 

Sec. 7.  Minnesota Statutes 2008, section 161.14, is amended by adding a subdivision to read:

 

Subd. 66.  Granite City Crossing.  The bridge over the Mississippi River on marked Trunk Highway 23 in St. Cloud is designated "Granite City Crossing." The commissioner of transportation shall adopt a suitable design to mark this bridge and erect appropriate signs, subject to section 161.139.

 

Sec. 8.  Minnesota Statutes 2008, section 161.14, is amended by adding a subdivision to read:

 

Subd. 67.  Veterans Memorial Highway.  Marked Trunk Highway 59 from the city of Karlstad to the border with Canada is designated as the "Veterans Memorial Highway." The commissioner shall adopt a suitable design to mark this highway and erect appropriate signs, subject to section 161.139.

 

Sec. 9.  Minnesota Statutes 2008, section 161.3426, subdivision 3, is amended to read:

 

Subd. 3.  Stipulated fee.  The commissioner shall award a stipulated fee not less than two-tenths of one percent of the department's estimated cost of design and construction to each short-listed, responsible proposer who provides a responsive but unsuccessful proposal.  When the request for proposals specifies a maximum price, the stipend shall be awarded if the proposal is responsive in all other aspects but comes in above the maximum price.  If the commissioner does not award a contract, all short-listed proposers must receive the stipulated fee.  If the commissioner cancels the contract before reviewing the technical proposals, the commissioner shall award each design-builder on the short list a stipulated fee of not less than two-tenths of one percent of the commissioner's estimated cost of design and construction.  The commissioner shall pay the stipulated fee to each proposer within 90 days after the award of the contract or the decision not to award a contract.  In consideration for paying the stipulated fee, the commissioner may use any ideas or information contained in the proposals in connection with any contract awarded for the project or in connection with a subsequent procurement, without any obligation to pay any


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additional compensation to the unsuccessful proposers.  Notwithstanding the other provisions of this subdivision, an unsuccessful short-list proposer may elect to waive the stipulated fee.  If an unsuccessful short-list proposer elects to waive the stipulated fee, the commissioner may not use ideas and information contained in that proposer's proposal.  Upon the request of the commissioner, a proposer who waived a stipulated fee may withdraw the waiver, in which case the commissioner shall pay the stipulated fee to the proposer and thereafter may use ideas and information in the proposer's proposal.

 

Sec. 10.  Minnesota Statutes 2008, section 161.3426, is amended by adding a subdivision to read:

 

Subd. 6.  Reissue of request for proposals.  If the commissioner rejects all bids or does not execute the contract, the commissioner may reissue the request for proposals and allow only short-listed teams to resubmit proposals.  The commissioner shall then pay a reasonable stipulated fee to each short-listed, responsible proposer who provides a responsive but unsuccessful proposal in response to the reissued request for proposals.  When the reissued request for proposals specifies a maximum price, the stipend shall be awarded if the proposal is responsive in all other aspects but comes in above the maximum price.

 

Sec. 11.  Minnesota Statutes 2008, section 162.02, subdivision 3a, is amended to read:

 

Subd. 3a.  Variances from rules and engineering standards.  (a) The commissioner may grant variances from the rules and from the engineering standards developed pursuant to section 162.021 or 162.07, subdivision 2.  A political subdivision in which a county state-aid highway is located or is proposed to be located may submit a written request to the commissioner for a variance for that highway.  The commissioner shall comply with section 174.75, subdivision 5, in evaluating a variance request related to a complete streets project.

 

(b) The commissioner shall publish notice of the request in the State Register and give notice to all persons known to the commissioner to have an interest in the matter.  The commissioner may grant or deny the variance within 30 days of providing notice of the request.  If a written objection to the request is received within seven days of providing notice, the variance shall be granted or denied only after a contested case hearing has been held on the request.  If no timely objection is received and the variance is denied without hearing, the political subdivision may request, within 30 days of receiving notice of denial, and shall be granted a contested case hearing.

 

(c) For purposes of this subdivision, "political subdivision" includes (1) an agency of a political subdivision which has jurisdiction over parks, and (2) a regional park authority.

 

Sec. 12.  Minnesota Statutes 2008, section 162.09, subdivision 3a, is amended to read:

 

Subd. 3a.  Variances from rules and engineering standards.  (a) The commissioner may grant variances from the rules and from the engineering standards developed pursuant to section 162.13, subdivision 2.  A political subdivision in which a municipal state-aid street is located or is proposed to be located may submit a written request to the commissioner for a variance for that street.  The commissioner shall comply with section 174.75, subdivision 5, in evaluating a variance request related to a complete streets project.

 

(b) The commissioner shall publish notice of the request in the State Register and give notice to all persons known to the commissioner to have an interest in the matter.  The commissioner may grant or deny the variance within 30 days of providing notice of the request.  If a written objection to the request is received within seven days of providing notice, the variance shall be granted or denied only after a contested case hearing has been held on the request.  If no timely objection is received and the variance is denied without hearing, the political subdivision may request, within 30 days of receiving notice of denial, and shall be granted a contested case hearing.

 

(c) For purposes of this subdivision, "political subdivision" includes (1) an agency of a political subdivision which has jurisdiction over parks, and (2) a regional park authority.


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Sec. 13.  Minnesota Statutes 2008, section 165.14, subdivision 4, is amended to read:

 

Subd. 4.  Prioritization of bridge projects.  (a) The commissioner shall classify all bridges in the program into tier 1, 2, or 3 bridges, where tier 1 is the highest tier.  Unless the commissioner identifies a reason for proceeding otherwise, before commencing bridge projects in a lower tier, all bridge projects within a higher tier must to the extent feasible be selected and funded in the approved state transportation improvement program, at any stage in the project development process, solicited for bids, in contract negotiation, under construction, or completed. 

 

(b) The classification of each tier is as follows: 

 

(1) tier 1 consists of any bridge in the program that (i) has an average daily traffic count that is above 1,000 and has a sufficiency rating that is at or below 50, or (ii) is identified by the commissioner as a priority project;

 

(2) tier 2 consists of any bridge that is not a tier 1 bridge, and (i) is classified as fracture-critical, or (ii) has a sufficiency rating that is at or below 80; and

 

(3) tier 3 consists of any other bridge in the program that is not a tier 1 or tier 2 bridge. 

 

(c) By June 30, 2018, all tier 1 and tier 2 bridges originally included in the program must be under contract for repair or replacement with a new bridge that contains a load-path-redundant design, except that a specific bridge may remain in continued service if the reasons are documented in the report required under subdivision 5. 

 

(d) All bridge projects funded under this section in fiscal year 2012 or later must include bicycle and pedestrian accommodations if both sides of the bridge are located in a city or the bridge links a pedestrian way, shared-use path, trail, or scenic bikeway.

 

Bicycle and pedestrian accommodations would not be required if:

 

(1) a comprehensive assessment demonstrates that there is an absence of need for bicycle and pedestrian accommodations for the life of the bridge; or

 

(2) there is a reasonable alternative bicycle and pedestrian crossing within one-quarter mile of the bridge project.

 

All bicycle and pedestrian accommodations should enable a connection to any existing bicycle and pedestrian infrastructure in close proximity to the bridge.  All pedestrian facilities must meet or exceed federal accessibility requirements as outlined in Title II of the Americans with Disabilities Act, codified in United States Code, title 42, chapter 126, subchapter II, and Section 504 of the Rehabilitation Act of 1973, codified in United States Code, title 29, section 794.

 

(e) The commissioner shall establish criteria for determining the priority of bridge projects within each tier, and must include safety considerations as a criterion. 

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 14.  Minnesota Statutes 2008, section 165.14, subdivision 5, is amended to read:

 

Subd. 5.  Statewide transportation planning report.  In conjunction with each update to the Minnesota statewide transportation plan, or at least every six years, the commissioner shall submit a report to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over transportation finance.  The report must include: 


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(1) an explanation of the criteria and decision-making processes used to prioritize bridge projects;

 

(2) a historical and projected analysis of the extent to which all trunk highway bridges meet bridge performance targets and comply with the accessibility requirements of Title II of the Americans with Disabilities Act of 1990, Public Law 101-336;

 

(3) a summary of bridge projects (i) completed in the previous six years or since the last update to the Minnesota statewide transportation plan, and (ii) currently in progress under the program;

 

(4) a summary of bridge projects scheduled in the next four fiscal years and included in the state transportation improvement program;

 

(5) a projection of annual needs over the next 20 years;

 

(6) a calculation of funding necessary to meet the completion date under subdivision 4, paragraph (c), compared to the total amount of bridge-related funding available; and

 

(7) for any tier 1 fracture-critical bridge that is repaired but not replaced, an explanation of the reasons for repair instead of replacement. 

 

Sec. 15.  Minnesota Statutes 2008, section 168.002, is amended by adding a subdivision to read:

 

Subd. 31a.  Special plates.  Unless otherwise specified, "special plates" or "special plate" means plates, or a single motorcycle plate, that are designed with wording or graphics that differ from a regular Minnesota passenger automobile plate or motorcycle plate.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 16.  Minnesota Statutes 2009 Supplement, section 168.012, subdivision 1, is amended to read:

 

Subdivision 1.  Vehicles exempt from tax, fees, or plate display.  (a) The following vehicles are exempt from the provisions of this chapter requiring payment of tax and registration fees, except as provided in subdivision 1c:

 

(1) vehicles owned and used solely in the transaction of official business by the federal government, the state, or any political subdivision;

 

(2) vehicles owned and used exclusively by educational institutions and used solely in the transportation of pupils to and from those institutions;

 

(3) vehicles used solely in driver education programs at nonpublic high schools;

 

(4) vehicles owned by nonprofit charities and used exclusively to transport disabled persons for charitable, religious, or educational purposes;

 

(5) vehicles owned by nonprofit charities and used exclusively for disaster response and related activities;

 

(6) vehicles owned by ambulance services licensed under section 144E.10 that are equipped and specifically intended for emergency response or providing ambulance services; and

 

(7) vehicles owned by a commercial driving school licensed under section 171.34, or an employee of a commercial driving school licensed under section 171.34, and the vehicle is used exclusively for driver education and training.


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(b) Provided the general appearance of the vehicle is unmistakable, the following vehicles are not required to register or display number plates:

 

(1) vehicles owned by the federal government, municipal;

 

(2) fire apparatuses, including fire-suppression support vehicles, owned or leased by the state or a political subdivision;

 

(3) police patrols, owned or leased by the state or a political subdivision; and

 

(4) ambulances, the general appearance of which is unmistakable, are not required to register or display number plates owned or leased by the state or a political subdivision.

 

(c) Unmarked vehicles used in general police work, liquor investigations, or arson investigations, and passenger automobiles, pickup trucks, and buses owned or operated by the Department of Corrections, must be registered and must display appropriate license number plates, furnished by the registrar at cost.  Original and renewal applications for these license plates authorized for use in general police work and for use by the Department of Corrections must be accompanied by a certification signed by the appropriate chief of police if issued to a police vehicle, the appropriate sheriff if issued to a sheriff's vehicle, the commissioner of corrections if issued to a Department of Corrections vehicle, or the appropriate officer in charge if issued to a vehicle of any other law enforcement agency.  The certification must be on a form prescribed by the commissioner and state that the vehicle will be used exclusively for a purpose authorized by this section.

 

(d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry, fraud unit, in conducting seizures or criminal investigations must be registered and must display passenger vehicle classification license number plates, furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the commissioner of revenue or the commissioner of labor and industry.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the purposes authorized by this section.

 

(e) Unmarked vehicles used by the Division of Disease Prevention and Control of the Department of Health must be registered and must display passenger vehicle classification license number plates.  These plates must be furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the commissioner of health.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the official duties of the Division of Disease Prevention and Control.

 

(f) Unmarked vehicles used by staff of the Gambling Control Board in gambling investigations and reviews must be registered and must display passenger vehicle classification license number plates.  These plates must be furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the board chair.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the official duties of the Gambling Control Board.

 

(g) Unmarked vehicles used in general investigation, surveillance, supervision, and monitoring by the staff of the Department of Human Services Office of Special Investigations and the executive director of the Minnesota sex offender program must be registered and must display passenger vehicle classification license number plates, furnished by the registrar at cost.  Original and renewal applications for passenger vehicle license plates must be accompanied by a certification signed by the commissioner of human services.  The certification must be on a form prescribed by the commissioner and state that the vehicles must be used exclusively for the official duties of the Office of Special Investigations and the executive director of the Minnesota sex offender program. 


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(h) Each state hospital and institution for persons who are mentally ill and developmentally disabled may have one vehicle without the required identification on the sides of the vehicle.  The vehicle must be registered and must display passenger vehicle classification license number plates.  These plates must be furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the hospital administrator.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the official duties of the state hospital or institution.

 

(i) Each county social service agency may have vehicles used for child and vulnerable adult protective services without the required identification on the sides of the vehicle.  The vehicles must be registered and must display passenger vehicle classification license number plates.  These plates must be furnished at cost by the registrar.  Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the agency administrator.  The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the official duties of the social service agency.

 

(j) All other motor vehicles must be registered and display tax-exempt number plates, furnished by the registrar at cost, except as provided in subdivision 1c.  All vehicles required to display tax-exempt number plates must have the name of the state department or political subdivision, nonpublic high school operating a driver education program, licensed commercial driving school, or other qualifying organization or entity, plainly displayed on both sides of the vehicle.  This identification must be in a color giving contrast with that of the part of the vehicle on which it is placed and must endure throughout the term of the registration.  The identification must not be on a removable plate or placard and must be kept clean and visible at all times; except that a removable plate or placard may be utilized on vehicles leased or loaned to a political subdivision or to a nonpublic high school driver education program.

 

Sec. 17.  Minnesota Statutes 2008, section 168.12, subdivision 2a, is amended to read:

 

Subd. 2a.  Personalized plates; rules.  (a) The commissioner may issue personalized plates or, if requested for special plates issued under section 168.123 for veterans, 168.124 for medal of honor recipients, or 168.125 for former prisoners of war, applicable personalized special veterans plates, to an applicant who:

 

(1) is an owner of a passenger automobile including a passenger automobile registered as a classic car, pioneer car, collector car, or street rod; any truck with a manufacturer's nominal rated capacity of one ton or less and resembling a pickup truck; a motorcycle, including a classic motorcycle; a motorized bicycle; a commuter van as defined in section 168.126; or a recreational vehicle;

 

(2) pays a onetime fee of $100 and any other fees required by this chapter;

 

(3) pays the registration tax required by this chapter for the motor vehicle; and

 

(4) complies with this chapter and rules governing registration of motor vehicles and licensing of drivers.

 

(b) The commissioner shall charge a replacement fee for personalized license plates and personalized special veterans plates issued under section 168.123 as specified in subdivision 5.  This fee must be paid by the applicant whenever the personalized plates are required to be replaced by law, except that as provided in section 168.124, subdivision 3, and 168.125, subdivision 1b, no fee may be charged to replace plates issued under those sections.

 

(c) In lieu of the registration number assigned as provided in subdivision 1, personalized plates and personalized special veterans plates must have imprinted on them a series of not more than seven numbers and letters, or five numbers and letters for personalized special veterans plates, in any combination and, as applicable, satisfy the design requirements of section 168.123, 168.124, or 168.125.  When an applicant has once obtained personalized plates or


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personalized special veterans plates, the applicant shall have a prior claim for similar personalized plates or personalized special veterans plates in the next succeeding year as long as current motor vehicle registration is maintained.

 

(d) The commissioner shall adopt rules in the manner provided by chapter 14, regulating the issuance and transfer of personalized plates and personalized special veterans plates.  No words or combination of letters placed on these plates may be used for commercial advertising, be of an obscene, indecent, or immoral nature, or be of a nature that would offend public morals or decency.  The call signals or letters of a radio or television station are not commercial advertising for the purposes of this subdivision.

 

(e) Despite the provisions of subdivision 1, personalized plates and personalized special veterans plates issued under this subdivision may be transferred to another motor vehicle listed in paragraph (a) and owned by the applicant, upon the payment of a fee of $5.

 

(f) The commissioner may by rule specify the format for notification.

 

(g) A personalized plate or personalized special veterans plate issued for a classic car, pioneer car, collector car, street rod, or classic motorcycle may not be transferred to a vehicle not eligible for such a plate.

 

(h) Despite any law to the contrary, if the personalized license plates are lost, stolen, or destroyed, the applicant may apply and must be issued duplicate license plates bearing the same combination of letters and numbers and the same design as (1) the former personalized plates or personalized special veterans plates under section 168.123 upon the payment of the fee required by section 168.29 or (2) the former personalized special veterans plates issued under section 168.124 or 168.125, without charge.

 

(i) A personalized vertical motorcycle plate may be issued upon payment of an additional payment of $100.  The vertical plate must have not more than four identification characters, cannot be a duplication of any current or reserved license plate, and must meet the requirements in paragraph (d).

 

Sec. 18.  Minnesota Statutes 2009 Supplement, section 168.12, subdivision 5, is amended to read:

 

Subd. 5.  Additional fee.  (a) In addition to any fee otherwise authorized or any tax otherwise imposed upon any vehicle, the payment of which is required as a condition to the issuance of any plate or plates, the commissioner shall impose the fee specified in paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate or plates, except for plates issued to disabled veterans as defined in section 168.031 and plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17, for passenger automobiles.  The commissioner shall issue graphic design plates only for vehicles registered pursuant to section 168.017 and recreational vehicles registered pursuant to section 168.013, subdivision 1g.

 

(b) Unless otherwise specified or exempted by statute, the following plate and validation sticker fees apply for the original, duplicate, or replacement issuance of a plate in a plate year:

 

          License Plate                                                                               Single                                    Double

 

          Regular and Disability                                                              $4.50                                      $6.00

          Special                                                                                         $8.50                                   $10.00

          Personalized (Replacement)                                                 $10.00                                   $14.00

          Collector Category                                                                 $13.50                                   $15.00

          Emergency Vehicle Display                                                    $3.00                                      $6.00

          Utility Trailer Self-Adhesive                                                    $2.50                                               

          Vertical Motorcycle Plate                                                   $100.00                                          NA


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          Stickers

 

          Duplicate year                                                                           $1.00                                      $1.00

          International Fuel Tax Agreement                                        $2.50                                               

 

(c) For vehicles that require two of the categories above, the registrar shall only charge the higher of the two fees and not a combined total.

 

Sec. 19.  Minnesota Statutes 2008, section 168.123, subdivision 1, is amended to read:

 

Subdivision 1.  General requirements; fees.  (a) On payment of a fee of $10 for each set of two plates, or for a single plate in the case of a motorcycle plate, payment of the registration tax required by law, and compliance with other applicable laws relating to vehicle registration and licensing, as applicable, the commissioner shall issue:

 

(1) special veteran's plates to an applicant who served in the active military service in a branch of the armed forces of the United States or of a nation or society allied with the United States in conducting a foreign war, was discharged under honorable conditions, and is a registered owner of a passenger automobile, recreational motor vehicle, or truck resembling a pickup truck and having a manufacturer's nominal rated capacity of one ton, but which is not a commercial motor vehicle as defined in section 169.011, subdivision 16; or

 

(2) a veteran's special motorcycle plate as described in subdivision 2, paragraph (a), (f), (h), or (i), or (j), or another special plate designed by the commissioner to an applicant who is a registered owner of a motorcycle and meets the criteria listed in this paragraph and in subdivision 2, paragraph (a), (f), (h), or (i), or (j).  Plates issued under this clause must be the same size as regular motorcycle plates.  Special motorcycle license plates issued under this clause are not subject to section 168.1293.

 

(b) The additional fee of $10 is payable for each set of veteran's plates, is payable only when the plates are issued, and is not payable in a year in which stickers are issued instead of plates.

 

(c) The veteran must have a certified copy of the veteran's discharge papers, indicating character of discharge, at the time of application.  If an applicant served in the active military service in a branch of the armed forces of a nation or society allied with the United States in conducting a foreign war and is unable to obtain a record of that service and discharge status, the commissioner of veterans affairs may certify the applicant as qualified for the veterans' plates provided under this section.

 

(d) For license plates issued for one-ton trucks described in paragraph (a), clause (1), the commissioner shall collect a surcharge of $5 on each $10 fee collected under paragraph (a).  The surcharge must be deposited in the vehicle services operating account in the special revenue fund.

 

Sec. 20.  Minnesota Statutes 2008, section 168.123, subdivision 2, is amended to read:

 

Subd. 2.  Design.  The commissioner of veterans affairs shall design the emblem for the veterans' special plates, subject to the approval of the commissioner, that satisfy the following requirements:

 

(a) For a Vietnam veteran who served after July 1, 1961, and before July 1, 1978, in the active military service in a branch of the armed forces of the United States or a nation or society allied with the United States the special plates must bear the inscription "VIETNAM VET" and the letters "V" and "V" with the first letter directly above the second letter and both letters just preceding the first numeral of the special plate number.

 

(b) For a veteran stationed on the island of Oahu, Hawaii, or offshore, during the attack on Pearl Harbor on December 7, 1941, the special plates must bear the inscription "PEARL HARBOR SURVIVOR" and the letters "P" and "H" with the first letter directly above the second letter and both letters just preceding the first numeral of the special plate number.


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(c) For a veteran who served during World War I or World War II, the plates must bear the inscription "WORLD WAR VET" and:

 

(1) for a World War I veteran, the characters "W" and "I" with the first character directly above the second character and both characters just preceding the first numeral of the special plate number; or

 

(2) for a World War II veteran, the characters "W" and "II" with the first character directly above the second character and both characters just preceding the first numeral of the special plate number.

 

(d) For a veteran who served during the Korean Conflict, the special plates must bear the inscription "KOREAN VET" and the letters "K" and "V" with the first letter directly above the second letter and both letters just preceding the first numeral of the special plate number.

 

(e) For a combat wounded veteran who is a recipient of the purple heart medal, the plates must bear the inscription "COMBAT WOUNDED VET" and have a facsimile on an emblem of the official purple heart medal and the letters "C" over "W" with the first letter directly over the second letter just preceding the first numeral of the special plate number.

 

(f) For a Persian Gulf War veteran, the plates must bear the inscription "GULF WAR VET" and the letters "G" and "W" with the first letter directly above the second letter and both letters just preceding the first numeral of the special plate number.  For the purposes of this section, "Persian Gulf War veteran" means a person who served on active duty after August 1, 1990, in a branch of the armed forces of the United States or a nation or society allied with the United States or the United Nations during Operation Desert Shield, Operation Desert Storm, or other military operation in the Persian Gulf area combat zone as designated in United States Presidential Executive Order No. 12744, dated January 21, 1991.

 

(g) For a veteran who served in the Laos War after July 1, 1961, and before July 1, 1978, the special plates must bear the inscription "LAOS WAR VET" and the letters "L" and "V" with the first letter directly above the second letter and both letters just preceding the first numeral of the special plate number.

 

(h) For a veteran who is the recipient of:

 

(1) the Iraq Campaign Medal, the special plates must be inscribed with a facsimile of that medal and must bear the inscription "IRAQ WAR VET" directly below the special plate number;

 

(2) the Afghanistan Campaign Medal, the special plates must be inscribed with a facsimile of that medal and must bear the inscription "AFGHAN WAR VET" directly below the special plate number; or

 

(3) the Global War on Terrorism Expeditionary Medal, the special plates must be inscribed with a facsimile of that medal and must bear the inscription "GWOT VETERAN" directly below the special plate number; or

 

(4) the Armed Forces Expeditionary Medal, the special plates must bear an appropriate inscription that includes a facsimile of that medal.

 

(i) For a veteran who is the recipient of the Global War on Terrorism Service Medal, the special plates must be inscribed with a facsimile of that medal and must bear the inscription "GWOT VETERAN" directly below the special plate number.  In addition, any member of the National Guard or other military reserves who has been ordered to federally funded state active service under United States Code, title 32, as defined in section 190.05, subdivision 5b, and who is the recipient of the Global War on Terrorism Service Medal, is eligible for the license plate described in this paragraph, irrespective of whether that person qualifies as a veteran under section 197.447.


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(j) For a veteran who is the recipient of the Korean Defense Service Medal, the special plates must be inscribed with a facsimile of that medal and must bear the inscription "KOREAN DEFENSE SERVICE" directly below the special plate number.

 

(k) For a veteran who is a recipient of the Bronze Star medal, the plates must bear the inscription "BRONZE STAR VET" and have a facsimile or an emblem of the official Bronze Star medal.

 

(l) For a veteran who is a recipient of the Silver Star medal, the plates must bear the inscription "SILVER STAR VET" and have a facsimile or an emblem of the official Silver Star medal.

 

Sec. 21.  Minnesota Statutes 2008, section 168.123, is amended by adding a subdivision to read:

 

Subd. 2b.  Eligibility; combat wounded plate.  A member of the United States armed forces who is serving actively in the military and who is a recipient of the purple heart medal is also eligible for the license plate under subdivision 2, paragraph (e).  The commissioner of public safety shall ensure that information regarding the required proof of eligibility for any applicant under this subdivision who has not yet been issued military discharge papers is distributed to the public officials responsible for administering this section. 

 

EFFECTIVE DATE.  This section is effective August 1, 2010.

 

Sec. 22.  Minnesota Statutes 2008, section 168.1255, subdivision 1, is amended to read:

 

Subdivision 1.  General requirements and procedures.  The commissioner shall issue special veteran contribution plates or a single motorcycle plate to an applicant who: 

 

(1) is a veteran, as defined in section 197.447;

 

(2) is a registered owner of a passenger automobile, recreational vehicle, one-ton pickup truck, or motorcycle;

 

(3) pays a fee of $10 to cover the costs of handling and manufacturing the plates;

 

(4) pays the registration tax required under section 168.013;

 

(5) pays the fees required under this chapter;

 

(6) pays an additional onetime World War II memorial contribution of $30, which the department shall retain until all start-up costs associated with the development and issuing of the plates have been recovered, after which the commissioner shall deposit contributions in the World War II donation match account; and

 

(7) complies with this chapter and rules governing the registration of motor vehicles and licensing of drivers. 

 

EFFECTIVE DATE.  This section is effective August 1, 2010.

 

Sec. 23.  Minnesota Statutes 2008, section 168.1293, is amended to read:

 

168.1293 CERTAIN SPECIAL PLATES; AUTHORIZATION, DISCONTINUANCE. 

 

Subdivision 1.  Definition.  For purposes of this section and section 168.1297, the following terms have the meanings given them:


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(1) "new special plate" or "proposed special plate" means a special plate authorized by sections 168.12, subdivisions 2b and 2e; 168.1235; and 168.129, to have wording and graphics that differ from a Minnesota passenger vehicle plate.  that is not authorized under this chapter and for which legislation authorizing the plate, including but not limited to a bill or amendment, is introduced or presented to the legislature; and

 

(2) "proximate special plate" means a special plate (i) authorized under section 168.12, subdivisions 2b and 2e; 168.1235; or 168.129; or (ii) authorized in law on or after August 1, 2010.

 

Subd. 1a.  Establishment of plate.  The commissioner may only establish a special plate as authorized under this chapter.  This requirement does not apply to alternative or additional designs for a special plate.

 

Subd. 2.  Submissions to commissioner.  (a) A person, legal entity, or other requester, however organized, that plans to seek legislation establishing a new special plate, or is a proponent of a new special plate, shall submit the following information and fee to the commissioner:

 

(1) The requester shall submit a request for the special plate being sought, describing the proposed special plate in general terms, the purpose of the plate, and the proposed fee or minimum contribution required for the plate.

 

(2) The requester shall submit the results of a scientific sample survey of Minnesota motor vehicle owners that indicates that at least 10,000 motor vehicle owners intend to purchase the proposed plate with the proposed fee or minimum contribution.  The requester's plan to undertake the survey must be reported to the commissioner before the survey is undertaken.  The survey must be performed independently of the requester by another person or legal entity, however organized, that conducts similar sample surveys in the normal course of business.

 

(3) The requester shall submit an application fee of $20,000, to cover the cost of reviewing the application for a new plate and developing the new special plate if authorized by law.  State funds may not be used to pay the application fee.  This requirement does not apply if legislation or a bill introduced to the legislature proposing the new special plate contains a mechanism by which all costs incurred by the commissioner for development and implementation of the plate are covered, provided that the application fee subsequently does apply if such a mechanism is not enacted in the law authorizing the new special plate.

 

(4) The requester shall submit a marketing strategy that contains (i) short-term and long-term marketing plans for the requested plate, and (ii) a financial analysis showing the anticipated revenues and the planned expenditures of any fee or contribution derived from the requested plate.

 

(b) The requester shall submit the information required under paragraph (a) to the commissioner at least 120 days before the convening of the next regular legislative session at which the requester will submit the proposal.

 

Subd. 2a.  Information for legislature.  (a) Within 15 days of the introduction of a bill proposing a new special plate, the commissioner shall submit a briefing to the chairs and ranking minority members of the house of representatives and senate committees to which the bill was referred.  At a minimum, the briefing must:

 

(1) summarize the requirements for a special plate under this section; and

 

(2) identify which of the requirements have been met for the proposed special plate.


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(b) If a proposed special plate is a topic of discussion at a legislative committee hearing, the commissioner shall make every reasonable effort to provide testimony.  The testimony must include the information required in the briefing under paragraph (a).

 

(c) Notwithstanding section 3.195, the commissioner may submit the briefing under paragraph (a) by submitting an electronic version rather than a printed version.

 

Subd. 3.  Design; redesign.  (a) If the proposed new special plate sought by the requester is approved by law, the requester shall submit the proposed design for the plate to the commissioner as soon as practicable, but not later than 120 days after the effective date of the law authorizing issuance of the plate.  The commissioner is responsible for selecting the final design for the special plate.

 

(b) The requester that originally requested a new special plate subsequently approved by law may not submit a new design for the plate within the five years following the date of first issuance of the plate unless the inventory of those plates has been exhausted.  The requester may deplete the remaining inventory of the plates by reimbursing the commissioner for the cost of the plates.

 

Subd. 4.  Refund of fee.  If the special plate requested is not authorized in the legislative session at which authorization was sought, the commissioner shall, if applicable, refund $17,500 of the application fee to the requester.

 

Subd. 5.  Discontinuance of plate.  (a) The commissioner shall discontinue the issuance or renewal of any proximate special plate authorized by sections 168.12, subdivisions 2b and 2e; 168.1235; and 168.129, if (1) fewer than 1,000 sets of those plates are currently registered at the end of the first six years during which the plates are available, or (2) fewer than 1,000 sets of those plates are currently registered at the end of any subsequent two-year period following the first six years of availability.

 

(b) The commissioner shall discontinue the issuance or renewal of any proximate special plate authorized by sections 168.12, subdivisions 2b and 2e; 168.1235; and 168.129, and distribution of any contributions resulting from that plate, if the commissioner determines that (1) the fund or requester receiving the contributions no longer exists, (2) the requester has stopped providing services that are authorized to be funded from the contribution proceeds, (3) the requester has requested discontinuance, or (4) contributions have been used in violation of subdivision 6.

 

(c) Nothing in this subdivision applies to plates issued under section 168.123, 168.124, 168.125, 168.1251, or 168.1255.

 

(d) Upon commencing discontinuance of a proximate special plate under this subdivision, the commissioner (1) shall not issue the plate, including as a duplicate; and (2) shall allow retention of any existing plate for the regular period.  For purposes of this paragraph, "regular period" may be, as appropriate, the period specified under section 168.12, subdivision 1; the time until issuance of a duplicate plate for that vehicle; or as otherwise provided by law.

 

Subd. 6.  Use of contributions.  Contributions made as a condition of obtaining a proximate special plate authorized by sections 168.12, subdivisions 2b and 2e; 168.1235; and 168.129, and interest earned on the contributions, may not be spent for commercial or for-profit purposes.

 

Subd. 7.  Deposit of fee; appropriation.  The commissioner shall deposit the application fee under subdivision 2, paragraph (a), clause (3), in the vehicle services operating account of the special revenue fund under section 299A.705.  An amount sufficient to pay the department's cost in implementing and administering this section, including payment of refunds under subdivision 4, is appropriated to the commissioner.


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Sec. 24.  Minnesota Statutes 2008, section 168.33, subdivision 2, is amended to read:

 

Subd. 2.  Deputy registrars.  (a) The commissioner may appoint, and for cause discontinue, a deputy registrar for any statutory or home rule charter city as the public interest and convenience may require, without regard to whether the county auditor of the county in which the city is situated has been appointed as the deputy registrar for the county or has been discontinued as the deputy registrar for the county, and without regard to whether the county in which the city is situated has established a county license bureau that issues motor vehicle licenses as provided in section 373.32.

 

(b) The commissioner may appoint, and for cause discontinue, a deputy registrar for any statutory or home rule charter city as the public interest and convenience may require, if the auditor for the county in which the city is situated chooses not to accept appointment as the deputy registrar for the county or is discontinued as a deputy registrar, or if the county in which the city is situated has not established a county license bureau that issues motor vehicle licenses as provided in section 373.32.  The individual appointed by the commissioner as a deputy registrar for any statutory or home rule charter city must be a resident of the county in which the city is situated.

 

(c) The commissioner may appoint, and for cause discontinue, the county auditor of each county as a deputy registrar.

 

(d) Despite any other provision, a person other than a county auditor or a director of a county license bureau, who was appointed by the registrar before August 1, 1976, as a deputy registrar for any statutory or home rule charter city, may continue to serve as deputy registrar and may be discontinued for cause only by the commissioner.  The county auditor who appointed the deputy registrars is responsible for the acts of deputy registrars appointed by the auditor.

 

(e) Each deputy, before entering upon the discharge of duties, shall take and subscribe an oath to faithfully discharge the duties and to uphold the laws of the state.

 

(f) If a deputy registrar appointed under this subdivision is not an officer or employee of a county or statutory or home rule charter city, the deputy shall in addition give bond to the state in the sum of $10,000, or a larger sum as may be required by the commissioner, conditioned upon the faithful discharge of duties as deputy registrar.

 

(g) Until January 1, 2012, A corporation governed by chapter 302A or 317A may be appointed a deputy registrar.  Upon application by an individual serving as a deputy registrar and the giving of the requisite bond as provided in this subdivision, personally assured by the individual or another individual approved by the commissioner, a corporation named in an application then becomes the duly appointed and qualified successor to the deputy registrar.  The appointment of any corporation as a deputy registrar expires January 1, 2012.  The commissioner shall appoint an individual as successor to the corporation as a deputy registrar.  The commissioner shall appoint as the successor agent to a corporation whose appointment expires under this paragraph an officer of the corporation if the officer applies for appointment before July 1, 2012.

 

(h) Each deputy registrar appointed under this subdivision shall keep and maintain office locations approved by the commissioner for the registration of vehicles and the collection of taxes and fees on vehicles.

 

(i) The deputy registrar shall keep records and make reports to the commissioner as the commissioner requires.  The records must be maintained at the offices of the deputy registrar.  The records and offices of the deputy registrar must at all times be open to the inspection of the commissioner or the commissioner's agents.  The deputy registrar shall report to the commissioner by the next working day following receipt all registrations made and taxes and fees collected by the deputy registrar.


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(j) The filing fee imposed under subdivision 7 must be deposited in the treasury of the place for which appointed or, if not a public official, a deputy shall retain the filing fee, but the registration tax and any additional fees for delayed registration the deputy registrar has collected the deputy registrar shall deposit by the next working day following receipt in an approved state depository to the credit of the state through the commissioner of management and budget.  The place for which the deputy registrar is appointed through its governing body must provide the deputy registrar with facilities and personnel to carry out the duties imposed by this subdivision if the deputy is a public official.  In all other cases, the deputy shall maintain a suitable facility for serving the public.

 

Sec. 25.  Minnesota Statutes 2008, section 168B.06, subdivision 1, is amended to read:

 

Subdivision 1.  Written notice of impound.  (a) When an impounded vehicle is taken into custody, the unit of government or impound lot operator taking it into custody shall give written notice of the taking within five days to the registered vehicle owner and any lienholders.

 

(b) The notice must:

 

(1) set forth the date and place of the taking;

 

(2) provide the year, make, model, and serial number of the impounded motor vehicle, if such information can be reasonably obtained, and the place where the vehicle is being held;

 

(3) inform the owner and any lienholders of their right to reclaim the vehicle under section 168B.07;

 

(4) state that failure of the owner or lienholders to:

 

(i) exercise their right to reclaim the vehicle within the appropriate time allowed under section 168B.051, subdivision 1, 1a, or 2, and under the conditions set forth in section 168B.07, subdivision 1, constitutes a waiver by them of all right, title, and interest in the vehicle and a consent to the transfer of title to and disposal or sale of the vehicle pursuant to section 168B.08; or

 

(ii) exercise their right to reclaim the contents of the vehicle within the appropriate time allowed and under the conditions set forth in section 168B.07, subdivision 3, constitutes a waiver by them of all right, title, and interest in the contents and consent to sell or dispose of the contents under section 168B.08; and

 

(5) state that a vehicle owner who provides to the impound lot operator documentation from a government or nonprofit agency or legal aid office that the owner is homeless, receives relief based on need, or is eligible for legal aid services, or has a household income at or below 50 percent of state median income has the unencumbered right to retrieve any and all contents without charge.

 

Sec. 26.  Minnesota Statutes 2008, section 168B.07, subdivision 3, is amended to read:

 

Subd. 3.  Retrieval of contents.  (a) For purposes of this subdivision:

 

(1) "contents" does not include any permanently affixed mechanical or nonmechanical automobile parts; automobile body parts; or automobile accessories, including audio or video players; and

 

(2) "relief based on need" includes, but is not limited to, receipt of MFIP and Diversionary Work Program, medical assistance, general assistance, general assistance medical care, emergency general assistance, Minnesota supplemental aid, MSA-emergency assistance, MinnesotaCare, Supplemental Security Income, energy assistance, emergency assistance, food stamps, earned income tax credit, or Minnesota working family tax credit.


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(b) A unit of government or impound lot operator shall establish reasonable procedures for retrieval of vehicle contents, and may establish reasonable procedures to protect the safety and security of the impound lot and its personnel.

 

(c) At any time before the expiration of the waiting periods provided in section 168B.051, a registered owner who provides documentation from a government or nonprofit agency or legal aid office that the registered owner is homeless, receives relief based on need, or is eligible for legal aid services, or has a household income at or below 50 percent of state median income has the unencumbered right to retrieve any and all contents without charge and regardless of whether the registered owner pays incurred charges or fees, transfers title, or reclaims the vehicle.

 

Sec. 27.  Minnesota Statutes 2008, section 169.041, subdivision 5, is amended to read:

 

Subd. 5.  Towing prohibited.  Unless the vehicle is described in subdivision 4, (a) A towing authority may not tow a motor vehicle because:

 

(1) the vehicle has expired registration tabs that have been expired for less than 90 days; or

 

(2) the vehicle is at a parking meter on which the time has expired and the vehicle has fewer than five unpaid parking tickets.

 

(b) A towing authority may tow a motor vehicle, notwithstanding paragraph (a), if:

 

(1) the vehicle is parked in violation of snow emergency regulations;

 

(2) the vehicle is parked in a rush-hour restricted parking area;

 

(3) the vehicle is blocking a driveway, alley, or fire hydrant;

 

(4) the vehicle is parked in a bus lane, or at a bus stop, during hours when parking is prohibited;

 

(5) the vehicle is parked within 30 feet of a stop sign and visually blocking the stop sign;

 

(6) the vehicle is parked in a disability transfer zone or disability parking space without a disability parking certificate or disability license plates;

 

(7) the vehicle is parked in an area that has been posted for temporary restricted parking (A) at least 12 hours in advance in a home rule charter or statutory city having a population under 50,000, or (B) at least 24 hours in advance in another political subdivision;

 

(8) the vehicle is parked within the right-of-way of a controlled-access highway or within the traveled portion of a public street when travel is allowed there;

 

(9) the vehicle is unlawfully parked in a zone that is restricted by posted signs to use by fire, police, public safety, or emergency vehicles;

 

(10) the vehicle is unlawfully parked on property at the Minneapolis-St. Paul International Airport owned by the Metropolitan Airports Commission;

 

(11) a law enforcement official has probable cause to believe that the vehicle is stolen, or that the vehicle constitutes or contains evidence of a crime and impoundment is reasonably necessary to obtain or preserve the evidence;

 

(12) the driver, operator, or person in physical control of the vehicle is taken into custody and the vehicle is impounded for safekeeping;


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(13) a law enforcement official has probable cause to believe that the owner, operator, or person in physical control of the vehicle has failed to respond to five or more citations for parking or traffic offenses;

 

(14) the vehicle is unlawfully parked in a zone that is restricted by posted signs to use by taxicabs;

 

(15) the vehicle is unlawfully parked and prevents egress by a lawfully parked vehicle;

 

(16) the vehicle is parked, on a school day during prohibited hours, in a school zone on a public street where official signs prohibit parking; or

 

(17) the vehicle is a junk, abandoned, or unauthorized vehicle, as defined in section 168B.011, and subject to immediate removal under chapter 168B.

 

Sec. 28.  Minnesota Statutes 2008, section 169.041, is amended by adding a subdivision to read:

 

Subd. 5a.  Quick clearance.  (a) For purposes of this subdivision:

 

(1) "road" includes the roadway, a lane for vehicular traffic, shoulder, on-ramp, and off-ramp of a street or highway, including a parkway; and

 

(2) "obstructions" includes motor vehicles, debris, personal property, and cargo.

 

(b) Within the Department of Transportation's eight-county metropolitan district, the department and the State Patrol may move, remove, or cause to remove obstructions from a road if:

 

(1) there has been a traffic incident involving a collision, accident, or spilled load;

 

(2) the obstructions block a road or aggravate an emergency on a road; and

 

(3) the department cooperates with the State Patrol and private towing or recovery companies authorized by the State Patrol concerning towing of the vehicle and removal of other obstructions.

 

(c) The State Patrol shall make a reasonable effort to contact the owner of the motor vehicle or other obstructions before undertaking an action under this subdivision.

 

(d) The department shall make a reasonable effort to allow the owner of the motor vehicle to arrange for its removal, taking into account any time delay and safety issues, and shall give due consideration to having the vehicle towed by a licensed towing service capable of safely moving the vehicle.

 

(e) Towing charges accrued by the owner or owners of the vehicle must be reasonable for the type of vehicle removed and the circumstances surrounding its removal.

 

Sec. 29.  Minnesota Statutes 2008, section 169.15, is amended to read:

 

169.15 IMPEDING TRAFFIC; INTERSECTION GRIDLOCK. 

 

Subdivision 1.  Impeding traffic; drive at slow speed.  No person shall drive a motor vehicle at such a slow speed as to impede or block the normal and reasonable movement of traffic except when reduced speed is necessary for safe operation or in compliance with law or except when the vehicle is temporarily unable to maintain a greater speed due to a combination of the weight of the vehicle and the grade of the highway.


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Subd. 2.  Intersection gridlock; stop or block traffic.  (a) Except as provided in paragraph (b), a driver of a vehicle shall not enter an intersection controlled by a traffic-control signal until the driver is able to move the vehicle immediately, continuously, and completely through the intersection without impeding or blocking the subsequent movement of cross traffic.

 

(b) Paragraph (a) does not apply to movement of a vehicle made: 

 

(1) at the direction of a city-authorized traffic-control agent or a peace officer;

 

(2) to facilitate passage of an authorized emergency vehicle with its emergency lights activated; or

 

(3) to make a turn, as permitted under section 169.19, that allows the vehicle to safely leave the intersection.

 

(c) A violation of this subdivision does not constitute grounds for suspension or revocation of the violator's driver's license.

 

EFFECTIVE DATE.  This section is effective January 1, 2011, and applies to acts committed on or after that date.

 

Sec. 30.  Minnesota Statutes 2008, section 169.26, is amended by adding a subdivision to read:

 

Subd. 4.  Pedestrians; penalty.  (a) A pedestrian shall not pass through, around, over, or under any crossing gate or barrier at a railroad grade crossing while the gate or barrier is closed or is being opened or closed.

 

(b) A pedestrian shall not enter, remain upon, or traverse over a railroad track, grade crossing, or pedestrian walkway crossing a railroad track when an audible bell or clearly visible electric or mechanical signal device is operational and warning of the presence, approach, passage, or departure of a railroad train.

 

(c) A person who violates this subdivision is subject to a fine of up to $100.

 

Sec. 31.  Minnesota Statutes 2008, section 169.306, is amended to read:

 

169.306 USE OF SHOULDERS BY BUSES. 

 

(a) The commissioner of transportation may is authorized to permit the use by transit buses and Metro Mobility buses of a shoulder, as designated by the commissioner, of a freeway or expressway, as defined in section 160.02, in the seven-county metropolitan area in Minnesota.

 

(b) If the commissioner permits the use of a freeway or expressway shoulder by transit buses, the commissioner shall also permit the use on that shoulder of a bus (1) with a seating capacity of 40 passengers or more operated by a motor carrier of passengers, as defined in section 221.012, subdivision 26, while operating in intrastate commerce or (2) providing regular route transit service, as defined in section 174.22, subdivision 8, or Metro Mobility services, and operated by or under contract with the Metropolitan Council, a local transit authority, or a transit authority created by the legislature.  Drivers of these buses must have adequate training in the requirements of paragraph (c), as determined by the commissioner.

 

(c) Buses authorized to use the shoulder under this section may be operated on the shoulder only when main-line traffic speeds are less than 35 miles per hour.  Drivers of buses being operated on the shoulder may not exceed the speed of main-line traffic by more than 15 miles per hour and may never exceed 35 miles per hour.  Drivers of buses being operated on the shoulder must yield to merging, entering, and exiting traffic and must yield to other vehicles on the shoulder.  Buses operated on the shoulder must be registered with the Department of Transportation.


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(d) For the purposes of this section, the term "Metro Mobility bus" means a motor vehicle of not less than 20 feet in length engaged in providing special transportation services under section 473.386 that is:

 

(1) operated by the Metropolitan Council, or operated by or under contract with a public or private entity receiving financial assistance to provide transit services from the Metropolitan Council or the commissioner of transportation; and

 

(2) authorized by the council commissioner to use freeway or expressway shoulders.

 

(e) This section does not apply to the operation of buses on dynamic shoulder lanes.

 

Sec. 32.  Minnesota Statutes 2009 Supplement, section 169.71, subdivision 1, is amended to read:

 

Subdivision 1.  Prohibitions generally; exceptions.  (a) A person shall not drive or operate any motor vehicle with:

 

(1) a windshield cracked or discolored to an extent to limit or obstruct proper vision;

 

(2) any objects suspended between the driver and the windshield, other than:

 

(i) sun visors;

 

(ii) rearview mirrors;

 

(iii) driver feedback and safety-monitoring equipment when mounted immediately behind, slightly above, or slightly below the rearview mirror;

 

(iii) (iv) global positioning systems or navigation systems when mounted or located near the bottommost portion of the windshield; and

 

(iv) (v) electronic toll collection devices; or

 

(3) any sign, poster, or other nontransparent material upon the front windshield, sidewings, or side or rear windows of the vehicle, other than a certificate or other paper required to be so displayed by law or authorized by the state director of the Division of Emergency Management or the commissioner of public safety.

 

(b) Paragraph (a), clauses (2) and (3), do not apply to law enforcement vehicles.

 

(c) Paragraph (a), clause (2), does not apply to authorized emergency vehicles.

 

Sec. 33.  Minnesota Statutes 2008, section 169.79, subdivision 3, is amended to read:

 

Subd. 3.  Rear display of single plate.  If the vehicle is a motorcycle, motor scooter, motorized bicycle, motorcycle sidecar, trailer registered at greater than 3,000 pounds gross vehicle weight (GVW), semitrailer, or vehicle displaying a dealer plate, then one license plate must be displayed horizontally or vertically, for a motorcycle issued vertical license plates under section 168.12, subdivision 2a, with the identifying numbers and letters facing outward from the vehicle and must be mounted in the upright position on the rear of the vehicle.


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Sec. 34.  Minnesota Statutes 2009 Supplement, section 169.865, subdivision 1, is amended to read:

 

Subdivision 1.  Six-axle vehicles.  (a) A road authority may issue an annual permit authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw or unprocessed agricultural products and be operated with a gross vehicle weight of up to: 

 

(1) 90,000 pounds; and

 

(2) 99,000 pounds during the period set by the commissioner under section 169.826, subdivision 1. 

 

(b) Notwithstanding subdivision 4 3, paragraph (a), clause (4), a vehicle or combination of vehicles operated under this subdivision and transporting only sealed intermodal containers may be operated on an interstate highway if allowed by the United States Department of Transportation. 

 

(c) The fee for a permit issued under this subdivision is $300. 

 

EFFECTIVE DATE.  This section is effective retroactively from July 1, 2008.

 

Sec. 35.  Minnesota Statutes 2008, section 169.87, is amended by adding a subdivision to read:

 

Subd. 7.  Cargo tank vehicles.  (a) Weight restrictions imposed by the commissioner under subdivisions 1 and 2 do not apply to cargo tank vehicles with two or three permanent axles when delivering propane for heating or dyed fuel oil on seasonally weight-restricted roads if the vehicle is loaded at no more than 50 percent capacity of the cargo tank.

 

(b) To be exempt from weight restrictions under paragraph (a), a cargo tank vehicle used for propane must have an operating gauge on the cargo tank that shows the amount of propane as a percent of capacity of the cargo tank.  Documentation of the capacity of the cargo tank must be available on the cargo tank or in the cab of the vehicle.  For purposes of this subdivision, propane weighs 4.2 pounds per gallon.

 

(c) To be exempt from weight restrictions under paragraph (a), a cargo tank vehicle used for dyed fuel oil must utilize the forward two tank compartments and must carry documentation of the empty weight of the cargo tank vehicle from a certified scale in the cab of the vehicle.  For purposes of this subdivision, dyed fuel oil weighs seven pounds per gallon.

 

(d) To the extent practicable, cargo tank vehicles that are exempt from weight restrictions under paragraph (a) shall complete deliveries on seasonally weight restricted roads by 12:00 p.m. and before the last week of April.

 

Sec. 36.  Minnesota Statutes 2009 Supplement, section 171.02, subdivision 2b, is amended to read:

 

Subd. 2b.  Exception for type III vehicle drivers.  (a) Notwithstanding subdivision 2, the holder of a class A, B, C, or D driver's license, without a school bus endorsement, may operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), under the conditions in paragraphs (b) through (o).

 

(b) The operator is an employee of the entity that owns, leases, or contracts for the school bus.

 

(c) The operator's employer has adopted and implemented a policy that provides for annual training and certification of the operator in:

 

(1) safe operation of a type III vehicle;


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(2) understanding student behavior, including issues relating to students with disabilities;

 

(3) encouraging orderly conduct of students on the bus and handling incidents of misconduct appropriately;

 

(4) knowing and understanding relevant laws, rules of the road, and local school bus safety policies;

 

(5) handling emergency situations;

 

(6) proper use of seat belts and child safety restraints;

 

(7) performance of pretrip vehicle inspections;

 

(8) safe loading and unloading of students, including, but not limited to:

 

(i) utilizing a safe location for loading and unloading students at the curb, on the nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other areas to enable the student to avoid hazardous conditions;

 

(ii) refraining from loading and unloading students in a vehicular traffic lane, on the shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;

 

(iii) avoiding a loading or unloading location that would require a pupil to cross a road, or ensuring that the driver or an aide personally escort the pupil across the road if it is not reasonably feasible to avoid such a location; and

 

(iv) placing the type III vehicle in "park" during loading and unloading; and

 

(v) escorting a pupil across the road under clause (iii) only after the motor is stopped, the ignition key is removed, the brakes are set, and the vehicle is otherwise rendered immobile; and

 

(9) compliance with paragraph (k), concerning reporting certain convictions to the employer within ten days of the date of conviction.

 

(d) A background check or background investigation of the operator has been conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03 for school district employees; section 144.057 or chapter 245C for day care employees; or section 171.321, subdivision 3, for all other persons operating a type A or type III vehicle under this subdivision.

 

(e) Operators shall submit to a physical examination as required by section 171.321, subdivision 2.

 

(f) The operator's employer requires preemployment drug and alcohol testing of applicants for operator positions.  Current operators must comply with the employer's policy under section 181.951, subdivisions 2, 4, and 5.  Notwithstanding any law to the contrary, the operator's employer may use a breathalyzer or similar device to fulfill random alcohol testing requirements.

 

(g) The operator's driver's license is verified annually by the entity that owns, leases, or contracts for the school bus type III vehicle as required under section 171.321, subdivision 5.

 

(h) A person who sustains a conviction, as defined under section 609.02, of violating section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of violating or whose driver's license is revoked under a similar statute or ordinance of another state, is precluded from operating a type III vehicle for five years from the date of conviction.


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(i) A person who has ever been convicted of a disqualifying offense as defined in section 171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under this subdivision.

 

(j) A person who sustains a conviction, as defined under section 609.02, of a moving offense in violation of chapter 169 within three years of the first of three other moving offenses is precluded from operating a type III vehicle for one year from the date of the last conviction.

 

(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) while employed by the entity that owns, leases, or contracts for the school bus, shall report the conviction to the employer within ten days of the date of the conviction.

 

(l) Students riding the type III vehicle must have training required under section 123B.90, subdivision 2.

 

(m) Documentation of meeting the requirements listed in this subdivision must be maintained under separate file at the business location for each type III vehicle operator.  The business manager, school board, governing body of a nonpublic school, or any other entity that owns, leases, or contracts for the type III vehicle operating under this subdivision is responsible for maintaining these files for inspection.

 

(n) The type III vehicle must bear a current certificate of inspection issued under section 169.451.

 

(o) An employee of a school or of a school district, who is not employed for the sole purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 37.  Minnesota Statutes 2008, section 171.321, subdivision 2, is amended to read:

 

Subd. 2.  Rules.  (a) The commissioner of public safety shall prescribe rules governing (1) the physical qualifications of school bus drivers and tests required to obtain a school bus endorsement, and (2) the physical qualifications of type III vehicle drivers. 

 

(b) The rules under paragraph (a) must provide that an applicant for a school bus endorsement or renewal is exempt from the physical qualifications and medical examination required to operate a school bus upon providing evidence of being medically examined and certified within the preceding 24 months as physically qualified to operate a commercial motor vehicle, pursuant to Code of Federal Regulations, title 49, part 391, subpart E, or rules of the commissioner of transportation incorporating those federal regulations.  The commissioner shall accept physical examinations for school bus drivers conducted by medical examiners authorized as provided by Code of Federal Regulations, title 49, chapter 3, part 391, subpart E.

 

(b) (c) The commissioner of public safety, in conjunction with the commissioner of education, shall adopt rules prescribing a training program for Head Start bus drivers.  The program must provide for initial classroom and behind-the-wheel training, and annual in-service training.  The program must provide training in defensive driving, human relations, emergency and accident procedures, vehicle maintenance, traffic laws, and use of safety equipment.  The program must provide that the training will be conducted by the contract operator for a Head Start agency, the Head Start grantee, a licensed driver training school, or by another person or entity approved by both commissioners.

 

(d) The commissioner may exempt a type III vehicle driver from the physical qualifications required to operate a type III vehicle upon receiving evidence of the driver having been medically examined and certified within the preceding 24 months as physically qualified to operate a commercial motor vehicle as provided for applicants for a school bus endorsement under paragraph (b).


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Sec. 38.  Minnesota Statutes 2008, section 174.01, subdivision 1, is amended to read:

 

Subdivision 1.  Department created.  In order to provide a balanced an integrated transportation system, including of aeronautics, highways, motor carriers, ports, public transit, railroads, and pipelines, and including facilities for walking and bicycling, a Department of Transportation is created.  The department is the principal agency of the state for development, implementation, administration, consolidation, and coordination of state transportation policies, plans, and programs.

 

Sec. 39.  Minnesota Statutes 2008, section 174.01, subdivision 2, is amended to read:

 

Subd. 2.  Transportation goals.  The goals of the state transportation system are as follows: 

 

(1) to provide safe transportation minimize fatalities and injuries for transportation users throughout the state;

 

(2) to provide multimodal and intermodal transportation that enhances mobility and economic development and provides access to all persons and businesses in Minnesota while ensuring that there is no facilities and services to increase access for all persons and businesses and to ensure economic well-being and quality of life without undue burden placed on any community;

 

(3) to provide a reasonable travel time for commuters;

 

(4) to enhance economic development and provide for the economical, efficient, and safe movement of goods to and from markets by rail, highway, and waterway;

 

(5) to encourage tourism by providing appropriate transportation to Minnesota facilities designed to attract tourists and to enhance the appeal, through transportation investments, of tourist destinations across the state;

 

(6) to provide transit services throughout to all counties in the state to meet the needs of transit users;

 

(7) to promote productivity accountability through system systematic management of system performance and productivity through the utilization of technological advancements;

 

(8) to maximize the long-term benefits received for each state transportation investment;

 

(9) to provide for and prioritize funding for of transportation investments that, at a minimum, preserves the transportation infrastructure ensures that the state's transportation infrastructure is maintained in a state of good repair;

 

(10) to ensure that the planning and implementation of all modes of transportation are consistent with the environmental and energy goals of the state;

 

(11) to promote and increase the use of high-occupancy vehicles and low-emission vehicles;

 

(12) to provide an air transportation system sufficient to encourage economic growth and allow all regions of the state the ability to participate in the global economy;

 

(13) to increase transit use of transit as a percentage of all trips statewide by giving highest priority to the transportation modes with the greatest people-moving capacity and lowest long-term economic and environmental cost;

 

(14) to promote and increase bicycling and walking as a percentage of all trips as an energy-efficient, nonpolluting, and healthful form healthy forms of transportation;


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(15) to reduce greenhouse gas emissions from the state's transportation sector; and

 

(16) to accomplish these goals with minimal impact on the environment. 

 

Sec. 40.  Minnesota Statutes 2008, section 174.02, subdivision 1a, is amended to read:

 

Subd. 1a.  Mission; efficiency; legislative report, recommendations.  It is part of the department's mission that within the department's resources the commissioner shall endeavor to: 

 

(1) prevent the waste or unnecessary spending of public money;

 

(2) use innovative fiscal and human resource practices to manage the state's resources and operate the department as efficiently as possible;

 

(3) minimize the degradation of air and, water quality, and the climate, including reduction in greenhouse gas emissions;

 

(4) coordinate the department's activities wherever appropriate with the activities of other governmental agencies;

 

(5) use technology where appropriate to increase agency productivity, improve customer service, increase public access to information about government, and increase public participation in the business of government;

 

(6) utilize constructive and cooperative labor-management practices to the extent otherwise required by chapters 43A and 179A;

 

(7) report to the legislature on the performance of agency operations and the accomplishment of agency goals in the agency's biennial budget according to section 16A.10, subdivision 1; and

 

(8) recommend to the legislature appropriate changes in law necessary to carry out the mission and improve the performance of the department. 

 

Sec. 41.  [174.186] DISADVANTAGED BUSINESS ENTERPRISE COLLABORATIVE. 

 

Subdivision 1.  Establishment; purpose.  (a) The commissioner of transportation shall convene regular meetings of the disadvantaged business enterprise program and workforce inclusion collaborative, as constituted by the commissioner as of January 1, 2010.

 

(b) The collaborative shall review and evaluate the commissioner's implementation of the disadvantaged business enterprise program, under Code of Federal Regulations, title 49, and recommend changes, including possible legislation, to improve the effectiveness of the program in this state.  At a minimum, the collaborative shall review, evaluate, and recommend program changes where necessary in the following areas:

 

(1) an on-the-job training program to increase the diversity of the workforce on projects;

 

(2) on-the-job trainee tracking and retention;

 

(3) a mentor and protégé program for small, disadvantaged business entrepreneurs;

 

(4) requirements for participation of disadvantaged business enterprises at the time of letting bids for contracts;


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(5) a coordinated access point to recruit disadvantaged business enterprises and a diverse workforce;

 

(6) objective measures for good-faith efforts to recruit disadvantaged business enterprises;

 

(7) a working capital fund for small disadvantaged business enterprises;

 

(8) increased transparency for results in the on-the-job training and disadvantaged business enterprise programs;

 

(9) civil rights program training;

 

(10) a targeted group business program for state-funded projects; and

 

(11) coding systems and dual goals for women and people of color.

 

(c) The commissioner shall provide staff and administrative support for the collaborative and shall establish policies and procedures for the collaborative, including quorum requirements and majority decision making.

 

(d) The representatives of the Department of Transportation with responsibility for civil rights and contracting shall participate in collaborative meetings and deliberations.

 

(e) Members of the collaborative do not receive compensation or reimbursement of expenses.

 

Subd. 2.  Powers and duties; report.  (a) The collaborative shall develop recommendations to the commissioner and to the legislature as provided in paragraph (b) designed to implement fully the federal Disadvantaged Business Enterprise program in this state and to improve the effectiveness of the program.  These recommendations, including any draft legislation if the collaborative decides to recommend legislation, may include, but are not limited to, strategies, policies, and actions focused on:

 

(1) requiring bid proposals to include information on disadvantaged business enterprise participation;

 

(2) defining and implementing appropriate accountability measures when disadvantaged business enterprise contract goals are not met in accordance with Code of Federal Regulations, title 49;

 

(3) sponsoring disadvantaged business enterprise training and development workshops; and

 

(4) strengthening the content and frequency of department reporting requirements relating to the disadvantaged business enterprise program.

 

(b) The collaborative shall report its findings and legislative recommendations, including draft legislation if the collaborative decides to recommend legislation, to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over transportation policy and finance by February 1, 2011.  The report must be made available electronically and available in print upon request.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 42.  Minnesota Statutes 2008, section 174.22, is amended by adding a subdivision to read:

 

Subd. 14a.  State sources of funds.  "State sources of funds" means funding for the public transit participation program appropriated from (1) the general fund, and (2) the greater Minnesota transit account.


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Sec. 43.  Minnesota Statutes 2008, section 174.23, subdivision 1, is amended to read:

 

Subdivision 1.  General.  (a) The commissioner shall have all powers necessary and convenient to carry out the provisions of sections 174.21 to 174.27 including the power to: 

 

(1) review applications for financial assistance, execute contracts, and obligate and expend program funds, upon conditions and limitations as the commissioner deems necessary for purposes of program and project implementation, operation, and evaluation,;

 

(2) accept and disburse federal funds available for the purposes of sections 174.21 to 174.27, and such funds are appropriated to the commissioner; and

 

(3) act upon request as the designated agent of any eligible person for the receipt and disbursal of federal funds.

 

(b) The commissioner shall perform the duties and exercise the powers under sections 174.21 to 174.27 in coordination with and in furtherance of statewide, regional, and local transportation plans and transportation development programs.  The commissioner shall set guidelines for financial assistance under the public transit subsidy program.  The commissioner shall present any proposed guidelines regarding public transit financial assistance to a legislative committee composed of equal numbers appointed by the house of representatives local and urban affairs and senate transportation committees.  The commissioner shall not implement any new guidelines regarding public transit financial assistance, between the period January 1, 1981 to April 15, 1982, without the prior approval of that committee. 

 

Sec. 44.  Minnesota Statutes 2008, section 174.23, subdivision 2, is amended to read:

 

Subd. 2.  Financial assistance; application, approval.  (a) The commissioner shall seek out and select eligible recipients of financial assistance under sections 174.21 to 174.27.

 

(b) The commissioner shall establish by rule the procedures and standards for review and approval of applications for financial assistance submitted to the commissioner pursuant to sections 174.21 to 174.27.  Any applicant shall provide to the commissioner any financial or other information required by the commissioner to carry out the commissioner's duties.  The commissioner may require local contributions from applicants as a condition for receiving financial assistance.

 

(c) Before the commissioner approves any grant, the application for the grant shall may be reviewed and approved by the appropriate regional development commission only for consistency with regional transportation plans and development guides.  If an applicant proposes a project within the jurisdiction of a transit authority or commission or a transit system assisted or operated by a city or county, the application shall also be reviewed by that commission, authority, or political subdivision for consistency with its transit programs, policies, and plans.  Any regional development commission that has not adopted a transportation plan may review but may not approve or disapprove of any application. 

 

Sec. 45.  Minnesota Statutes 2009 Supplement, section 174.24, subdivision 1a, is amended to read:

 

Subd. 1a.  Transit service needs implementation Greater Minnesota transit investment plan.  (a) The commissioner shall develop a greater Minnesota transit service needs implementation investment plan that contains a goal of meeting at least 80 percent of unmet total transit service needs in greater Minnesota by July 1, 2015, and meeting at least 90 percent of unmet total transit service needs in greater Minnesota by July 1, 2025.


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(b) The plan must include, but is not limited to, the following:

 

(1) an analysis of ridership and total transit service needs throughout greater Minnesota;

 

(2) a calculation of unmet needs; an assessment of the level and type of service required to meet unmet total transit service needs, for the transit system classifications as provided under subdivision 3b, paragraph (c), of urbanized area, small urban area, rural area, and elderly and disabled service;

 

(3) an analysis of costs and revenue options; and,

 

(4) a plan to reduce unmet total transit service needs as specified in this subdivision; and

 

(5) identification of the operating and capital costs necessary to meet 100 percent of the greater Minnesota transit targeted and projected bus service hours, as identified in the greater Minnesota transit plan, for 2010, 2015, 2020, 2025, and 2030.

 

(c) The plan must specifically address special transportation service ridership and needs.  The plan must also provide that recipients of operating assistance under this section provide fixed route public transit service without charge for disabled veterans in accordance with subdivision 7.  The commissioner may amend the plan as necessary, and may use all or part of the 2001 greater Minnesota public transportation plan created by the Minnesota Department of Transportation.

 

Sec. 46.  Minnesota Statutes 2008, section 174.24, subdivision 2, is amended to read:

 

Subd. 2.  Eligibility; application.  Any legislatively established public transit commission or authority, any county or statutory or home rule charter city providing financial assistance to or operating public transit, any private operator of public transit, or any combination thereof is eligible to receive financial assistance through the public transit participation program.  Except as provided in subdivision 2b for assistance provided from federal funds, eligible recipients must be located outside of the metropolitan area.

 

Sec. 47.  Minnesota Statutes 2008, section 174.24, is amended by adding a subdivision to read:

 

Subd. 2b.  Federal aid.  (a) The commissioner may accept and disburse federal funds received and appropriated under section 174.23, subdivision 1, as an additional source of funds for implementing the public transit participation program established in this section.  This authority includes, but is not limited to:

 

(1) adopting administrative rules to establish financial assistance allocation priorities, identify factors to consider in reviewing an applicant's management plan, evaluate a request for financial assistance, and determine the amount of financial assistance to be provided; and

 

(2) establishing project selection criteria under the United States Code, title 49, section 5311, state management plan as approved by the Federal Transit Administration, United States Department of Transportation.

 

(b) If the commissioner accepts and disburses federal funds as provided in paragraph (a), the commissioner shall:

 

(1) maintain separate accounts for (i) state sources of funds, and (ii) federal sources of funding; and

 

(2) ensure that all state sources of funds are only used for assistance to eligible recipients as provided in subdivision 2.


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Sec. 48.  Minnesota Statutes 2008, section 174.24, subdivision 3b, is amended to read:

 

Subd. 3b.  Operating assistance; recipient classifications.  (a) The commissioner shall determine the total operating cost of any public transit system receiving or applying for assistance in accordance with generally accepted accounting principles.  To be eligible for financial assistance, an applicant or recipient shall provide to the commissioner all financial records and other information and shall permit any inspection reasonably necessary to determine total operating cost and correspondingly the amount of assistance that may be paid to the applicant or recipient.  Where more than one county or municipality contributes assistance to the operation of a public transit system, the commissioner shall identify one as lead agency for the purpose of receiving money under this section.

 

(b) Prior to distributing operating assistance to eligible recipients for any contract period, the commissioner shall place all recipients into one of the following classifications:  urbanized area service, small urban area service, rural area service, and elderly and disabled service.

 

(c) The commissioner shall distribute funds under this section so that the percentage of total contracted operating cost paid by any recipient from local sources will not exceed the percentage for that recipient's classification, except as provided in an undue hardship case this subdivision.  The percentages must be:

 

(1) for urbanized area service and small urban area service, 20 percent;

 

(2) for rural area service, 15 percent; and

 

(3) for elderly and disabled service, 15 percent. 

 

Except as provided in a United States Department of Transportation program allowing or requiring a lower percentage to be paid from local sources, the remainder of the recipient's total contracted operating cost will be paid from state sources of funds less any assistance received by the recipient from any federal source the United States Department of Transportation.

 

(d) For purposes of this subdivision, "local sources" means all local sources of funds and includes all operating revenue, tax levies, and contributions from public funds, except that the commissioner may exclude from the total assistance contract revenues derived from operations the cost of which is excluded from the computation of total operating cost.  Total operating costs of the Duluth Transit Authority or a successor agency does not include costs related to the Superior, Wisconsin service contract and the Independent School District No. 709 service contract. 

 

(c) (e) If a recipient informs the commissioner in writing after the establishment of these percentages but prior to the distribution of financial assistance for any year that paying its designated percentage of total operating cost from local sources will cause undue hardship, the commissioner may reduce the percentage to be paid from local sources by the recipient and increase the percentage to be paid from local sources by one or more other recipients inside or outside the classification.  However, the commissioner may not reduce or increase any recipient's percentage under this paragraph for more than two years successively.  If for any year the funds appropriated to the commissioner to carry out the purposes of this section are insufficient to allow the commissioner to pay the state share of total operating cost as provided in this paragraph, the commissioner shall reduce the state share in each classification to the extent necessary.

 

Sec. 49.  Minnesota Statutes 2009 Supplement, section 174.24, subdivision 5, is amended to read:

 

Subd. 5.  Method of payment, operating assistance.  Payments for operating assistance under this section from state sources of funds must be made in the following manner:

 

(a) For payments made from the general fund:

 

(1) 50 percent of the total contract amount in or before the first month of operation;


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(2) 40 percent of the total contract amount in or before the seventh month of operation;

 

(3) 9 percent of the total contract amount in or before the 12th month of operation; and

 

(4) 1 percent of the total contract amount after the final audit.

 

(b) For payments made from the greater Minnesota transit account:

 

(1) 50 percent of the total contract amount in or before the seventh month of operation; and

 

(2) 50 percent of the total contract amount in or before the 11th month of operation.

 

Sec. 50.  Minnesota Statutes 2008, section 174.247, is amended to read:

 

174.247 ANNUAL TRANSIT REPORT. 

 

(a) By February 15 annually, the commissioner shall submit a report to the legislature on transit services outside the metropolitan area.  The Metropolitan Council and any public transit system receiving assistance under section 174.24 shall provide assistance in creating the report, as requested by the commissioner.

 

(b) The report must include, at a minimum, the following:

 

(1) a descriptive overview of public transit in Minnesota;

 

(2) a descriptive summary of funding sources and assistance programs;

 

(3) a summary of each public transit system receiving assistance under section 174.24;

 

(4) data that identifies use of volunteers in providing transit service;

 

(5) financial data that identifies operating and capital costs, and funding sources, for each public transit system and for each transit system classification under section 174.24, subdivision 3b:

 

(i) the operating and capital costs;

 

(ii) each of the funding sources used to provide financial assistance; and

 

(iii) for federal funds, the amount from each specific federal program under which funding is provided;

 

(6) a summary of the differences in program implementation requirements and aid recipient eligibility between federal aid and state sources of funds;

 

(7) in each odd-numbered year, an analysis of public transit system needs and operating expenditures on an annual basis, which must include a methodology for identifying monetary needs, and calculations of:

 

(i) the total monetary needs for all public transit systems, for the year of the report and the ensuing five years;

 

(ii) the total expenditures from local sources for each transit system classification;

 

(iii) the comprehensive transit assistance percentage for each transit system classification, which equals (A) the expenditures identified under clause (7), item (ii), for a transit system classification, divided by (B) the amounts identified under subitem (A), plus the sum of state sources of funds plus federal funds provided to all transit systems in that classification; and


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(iv) in each odd-numbered year, beginning in 2009, a calculation of the amounts the amount of surplus or insufficient funds available for (i) paying the state share of transit operating costs under section 174.24, subdivision 3b, and (ii) paying capital and operating costs to fully implement the transit service needs implementation greater Minnesota transit investment plan under section 174.24, subdivision 1a.

 

Sec. 51.  [174.285] MINNESOTA COUNCIL ON TRANSPORTATION ACCESS. 

 

Subdivision 1.  Council established.  A Minnesota Council on Transportation Access is established to study, evaluate, oversee, and make recommendations to improve the coordination, availability, accessibility, efficiency, cost-effectiveness, and safety of transportation services provided to the transit public.  "Transit public" means those persons who utilize public transit and those who, because of mental or physical disability, income status, or age are unable to transport themselves and are dependent upon others for transportation services.

 

Subd. 2.  Duties of council.  In order to accomplish the purposes in subdivision 1, the council, following consultation with the legislative committees or divisions with jurisdiction over transportation policy and budget, or with appropriate legislative transportation subcommittees, shall adopt a biennial work plan that must incorporate the following activities:

 

(1) compile information on existing transportation alternatives for the transit public, and serve as a clearinghouse for information on services, funding sources, innovations, and coordination efforts;

 

(2) identify best practices and strategies that have been successful in Minnesota and in other states for coordination of local, regional, state, and federal funding and services;

 

(3) recommend statewide objectives for providing public transportation services for the transit public;

 

(4) identify barriers prohibiting coordination and accessibility of public transportation services and aggressively pursue the elimination of those barriers;

 

(5) recommend policies and procedures for coordinating local, regional, state, and federal funding and services for the transit public;

 

(6) identify stakeholders in providing services for the transit public, and seek input from them concerning barriers and appropriate strategies;

 

(7) recommend guidelines for developing transportation coordination plans throughout the state;

 

(8) encourage all state agencies participating in the council to purchase trips within the coordinated system;

 

(9) facilitate the creation and operation of transportation brokerages to match riders to the appropriate service, promote shared dispatching, compile and disseminate information on transportation options, and promote regional communication;

 

(10) encourage volunteer driver programs and recommend legislation to address liability and insurance issues;

 

(11) recommend minimum performance standards for delivery of services;

 

(12) identify methods to eliminate fraud and abuse in special transportation services;

 

(13) develop a standard method for addressing liability insurance requirements for transportation services purchased, provided, or coordinated;


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(14) design and develop a contracting template for providing coordinated transportation services;

 

(15) recommend an interagency uniform contracting and billing and accounting system for providing coordinated transportation services;

 

(16) encourage the design and development of training programs for coordinated transportation services;

 

(17) encourage the use of public school transportation vehicles for the transit public;

 

(18) develop an allocation methodology that equitably distributes transportation funds to compensate units of government and all entities that provide coordinated transportation services;

 

(19) identify policies and necessary legislation to facilitate vehicle sharing; and

 

(20) advocate aggressively for eliminating barriers to coordination, implementing coordination strategies, enacting necessary legislation, and appropriating resources to achieve the council's objectives.

 

Subd. 3.  Coordination with legislative committees.  The council shall coordinate its meeting schedule and activities pursuant to its work plan, to the extent practicable, with legislative committees and divisions with jurisdiction over transportation budget and policy, or with appropriate subcommittees.  The chairperson of the council shall act as a liaison with the chairs and ranking minority members of the legislative transportation committees, divisions, and appropriate subcommittees, in carrying out these duties.

 

Subd. 4.  Membership.  (a) The council is composed of the following 13 members:

 

(1) one representative from the Office of the Governor;

 

(2) one representative from the Council on Disability;

 

(3) one representative from the Minnesota Public Transit Association;

 

(4) the commissioner of transportation or a designee;

 

(5) the commissioner of human services or a designee;

 

(6) the commissioner of health or a designee;

 

(7) the chair of the Metropolitan Council or a designee;

 

(8) the commissioner of education or a designee;

 

(9) the commissioner of veterans affairs or a designee;

 

(10) one representative from the Board on Aging;

 

(11) the commissioner of employment and economic development or a designee;

 

(12) the commissioner of commerce or a designee; and

 

(13) the commissioner of management and budget or a designee.


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(b) All appointments required by paragraph (a) must be completed by August 1, 2010.

 

(c) The commissioner of transportation or a designee shall convene the first meeting of the council within two weeks after the members have been appointed to the council.  The members shall elect a chairperson from their membership at the first meeting.

 

(d) The Department of Transportation and the Department of Human Services shall provide necessary staff support for the council.

 

Subd. 5.  Report.  By January 15 of each year, beginning in 2012, the council shall report its findings, recommendations, and activities to the governor's office and to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation, health, and human services, and to the legislature as provided under section 3.195.

 

Subd. 6.  Reimbursement.  Members of the council shall receive reimbursement of expenses from the commissioner of transportation as provided in section 15.059, subdivision 3.

 

Subd. 7.  Transfer of appropriation.  The amount appropriated to the Metropolitan Council in Laws 2009, chapter 36, article 1, section 4, subdivision 2, for the administrative expenses of the Minnesota Council on Transportation Access, and for other costs relating to the preparation of required reports, including the costs of hiring a consultant, is transferred to the Department of Transportation for the same purposes.

 

Subd. 8.  Expiration.  This section expires June 30, 2014.

 

Sec. 52.  [174.75] COMPLETE STREETS. 

 

Subdivision 1.  Definition.  "Complete streets" is the planning, scoping, design, implementation, operation, and maintenance of roads in order to reasonably address the safety and accessibility needs of users of all ages and abilities.  Complete streets considers the needs of motorists, pedestrians, transit users and vehicles, bicyclists, and commercial and emergency vehicles moving along and across roads, intersections, and crossings in a manner that is sensitive to the local context and recognizes that the needs vary in urban, suburban, and rural settings.

 

Subd. 2.  Implementation.  The commissioner shall implement a complete streets policy after consultation with stakeholders, state and regional agencies, local governments, and road authorities.  The commissioner, after such consultation, shall address relevant protocols, guidance, standards, requirements, and training, and shall integrate related principles of context-sensitive solutions.

 

Subd. 3.  Report.  Beginning in 2011, the commissioner shall report on the implementation of the complete streets policy in the agency's biennial budget submission under section 174.02.

 

Subd. 4.  Local road authorities.  Local road authorities are encouraged, but not required, to create and adopt complete streets policies for their roads that reflect local context and goals.  Nothing in this section may be construed to prohibit a local road authority from adopting a complete streets policy that incorporates or exceeds statutory complete streets principles.

 

Subd. 5.  Variances from engineering standards.  (a) When evaluating a request for a variance from the engineering standards for state-aid projects under chapter 162 in which the variance request is related to complete streets, the commissioner shall consider the latest edition of: 

 

(1) A Policy on Geometric Design of Highways and Streets, from the American Association of State Highway and Transportation Officials; and


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(2) for projects in urban areas, the Context Sensitive Solutions in Designing Major Urban Thoroughfares for Walkable Communities, from the Institute of Transportation Engineers.

 

(b) If the commissioner denies a variance request related to complete streets, the commissioner shall provide written reasons for the denial to the political subdivision that submitted the request.

 

Sec. 53.  Minnesota Statutes 2008, section 174.86, subdivision 5, is amended to read:

 

Subd. 5.  Commuter Rail Corridor Coordinating Committee.  (a) A Commuter Rail Corridor Coordinating Committee shall be is established to advise the commissioner on issues relating to the alternatives analysis, environmental review, advanced corridor planning, preliminary engineering, final design, implementation method, construction of commuter rail, public involvement, land use, service, and safety.  The Commuter Rail Corridor Coordinating Committee shall consist of:

 

(1) one member representing each significant funding partner in whose jurisdiction the line or lines are located;

 

(2) one member appointed by each county in which the corridors are located;

 

(3) one member appointed by each city in which advanced corridor plans indicate that a station may be located;

 

(4) two members appointed by the commissioner, one of whom shall be designated by the commissioner as the chair of the committee;

 

(5) one member appointed by each metropolitan planning organization through which the commuter rail line may pass; and

 

(6) one member appointed by the president of the University of Minnesota, if a designated corridor provides direct service to the university.; and

 

(7) two ex-officio members who are members of labor organizations operating in, and with authority for, trains or rail yards or stations junctioning with freight and commuter rail lines on corridors, with one member appointed by the speaker of the house and the other member appointed by the senate Rules and Administration Subcommittee on Committees.

 

(b) A joint powers board existing on April 1, 1999, consisting of local governments along a commuter rail corridor, shall perform the functions set forth in paragraph (a) in place of the committee.

 

(c) Notwithstanding section 15.059, subdivision 5, the committee does not expire.

 

Sec. 54.  Minnesota Statutes 2008, section 219.01, is amended to read:

 

219.01 TRACK SAFETY STANDARDS; SAFETY TECHNOLOGY GRANTS. 

 

(a) The track safety standards of the United States Department of Transportation and Federal Railroad Administration apply to railroad trackage and are the standards for the determination of unsafe trackage within the state.

 

(b) The commissioner of transportation shall apply to the Federal Railroad Administration under Public Law 110-432, the Railroad Safety Enhancement Act of 2008 (the act), for (1) railroad safety technology grant funding available under section 105 of the act and (2) development and installation of rail safety technology, including provision for switch position indicator signals in nonsignalized main track territory, under section 406 of the act. 


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The commissioner shall respond and make application to the Federal Railroad Administration notice of funds availability under the Rail Safety Assurance Act in a timely manner and before the date of the program deadline to assure full consideration of the application.  The commissioner shall (i) prioritize grant requests for the installation of switch indicator signals on all segments of nonsignalized track where posted speeds are in excess of 20 miles per hour and (ii) apply for grant funding in each year after 2010 until all nonsignalized track territory in the state has switch indicator signals installed and in operation.

 

(c) Prior to applying for funds under paragraph (b), the commissioner shall solicit grant requests from all eligible railroads.  The commissioner shall submit written notice to the chairs of the legislative committees with jurisdiction over transportation policy and finance of an acceptance by a class I or class II railroad of federal grant program funding for switch point indicator monitor systems.

 

(d) Participating railroads shall provide the 20 percent nonfederal match.  Railroads shall provide all technical documentation requested by the commissioner and required by the Federal Railroad Administration for the applications under paragraph (b).  Railroads are responsible for developing, acquiring, and installing all rail safety technology obtained under this section in accordance with requirements established by the Federal Railroad Administration.

 

Sec. 55.  Minnesota Statutes 2008, section 221.012, is amended by adding a subdivision to read:

 

Subd. 27a.  Motor carrier of railroad employees.  "Motor carrier of railroad employees" means a motor carrier engaged in the for-hire transportation of railroad employees of a class I or II common carrier, as defined in Code of Federal Regulations, title 49, part 1201, general instruction 1-1, under the terms of a contractual agreement with a common carrier, as defined in section 218.011, subdivision 10.

 

Sec. 56.  Minnesota Statutes 2008, section 221.012, subdivision 38, is amended to read:

 

Subd. 38.  Small vehicle passenger service.  (a) "Small vehicle passenger service" means a service provided by a person engaged in the for-hire transportation of passengers in a vehicle designed to transport seven or fewer persons, including the driver.

 

(b) In the metropolitan area as defined in section 473.121, subdivision 2, "small vehicle passenger service" also includes for-hire transportation of persons who are certified by the Metropolitan Council to use special transportation service provided under section 473.386, in a vehicle designed to transport not more than 15 persons including the driver, that is equipped with a wheelchair lift and at least three wheelchair securement positions. 

 

(c) Small vehicle passenger service does not include a motor carrier of railroad employees.

 

Sec. 57.  [221.0255] MOTOR CARRIER OF RAILROAD EMPLOYEES. 

 

(a) A motor carrier of railroad employees must meet the requirements specified in this section, is subject to section 221.291, and is otherwise exempt from the provisions of this chapter.

 

(b) A vehicle operator for a motor carrier of railroad employees who transports passengers must:

 

(1) have a valid driver's license under chapter 171; and

 

(2) submit to a physical examination.

 

(c) The carrier must implement a policy that provides for annual training and certification of the operator in:

 

(1) safe operation of the vehicle transporting railroad employees;


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(2) knowing and understanding relevant laws, rules of the road, and safety policies;

 

(3) handling emergency situations;

 

(4) proper use of seat belts;

 

(5) performance of pretrip and posttrip vehicle inspections, and inspection record keeping; and

 

(6) proper maintenance of required records.

 

(d) The carrier must:

 

(1) perform a background check or background investigation of the operator;

 

(2) annually verify the operator's driver's license;

 

(3) document meeting the requirements in this subdivision, and maintain the file at the carrier's business location;

 

(4) maintain liability insurance in a minimum amount of $5,000,000 regardless of the seating capacity of the vehicle; and

 

(5) maintain uninsured and underinsured coverage in a minimum amount of $1,000,000.

 

If a party contracts with the motor carrier on behalf of the railroad to transport the railroad employees, then the insurance requirements may be satisfied by either that party or the motor carrier, so long as the motor carrier is a named insured or additional insured under any policy.

 

(e) A person who sustains a conviction of violating section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of or has their driver's license revoked under a similar statute or ordinance of another state, may not operate a vehicle under this subdivision for five years from the date of conviction.  A person who sustains a conviction of a moving offense in violation of chapter 169 within three years of the first of three other moving offenses may not operate a vehicle under this subdivision for one year from the date of the last conviction.  A person who has ever been convicted of a disqualifying offense as defined in section 171.3215, subdivision 1, paragraph (c), may not operate a vehicle under this subdivision.

 

(f) An operator who sustains a conviction as described in paragraph (e) while employed by the carrier shall report the conviction to the carrier within ten days of the date of the conviction.

 

(g) A carrier must implement a mandatory alcohol and controlled substance testing program as provided under sections 181.950 to 181.957 that consists of preemployment testing, postaccident testing, random testing, reasonable suspicion testing, return-to-duty testing, and follow-up testing.

 

(h) A motor carrier of railroad employees shall not allow or require a driver to drive or remain on duty for more than:  ten hours after eight consecutive hours off duty; 15 hours of combined on-duty time and drive time since last obtaining eight consecutive hours of off-duty time; or 70 hours of on-duty and drive time in any period of eight consecutive days.  After 24 hours off duty, a driver begins a new seven consecutive day period and on-duty time is reset to zero.


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(i) An operator who encounters an emergency and cannot, because of that emergency, safely complete a transportation assignment within the ten-hour maximum driving time permitted under paragraph (h), may drive for not more than two additional hours in order to complete that transportation assignment or to reach a place offering safety for the occupants of the vehicle and security for the transport motor vehicle, if the transportation assignment reasonably could have been completed within the ten-hour period absent the emergency.

 

(j) A carrier shall maintain and retain for a period of six months accurate time records that show the time the driver reports for duty each day; the total number of hours of on-duty time for each driver for each day; the time the driver is released from duty each day; and the total number of hours driven each day.

 

(k) For purposes of this subdivision, the following terms have the meanings given:

 

(1) "conviction" has the meaning given in section 609.02; and

 

(2) "on-duty time" means all time at a terminal, facility, or other property of a contract carrier or on any public property waiting to be dispatched.  On-duty time includes time spent inspecting, servicing, or conditioning the vehicle.

 

EFFECTIVE DATE.  Paragraph (d), clause (5), is effective July 1, 2011.

 

Sec. 58.  Minnesota Statutes 2009 Supplement, section 299D.03, subdivision 5, is amended to read:

 

Subd. 5.  Traffic fines and forfeited bail money.  (a) All fines and forfeited bail money collected from persons apprehended or arrested by officers of the State Patrol shall be transmitted by the person or officer collecting the fines, forfeited bail money, or installments thereof, on or before the tenth day after the last day of the month in which these moneys were collected, to the commissioner of management and budget.  Except where a different disposition is required in this subdivision or section 387.213, or otherwise provided by law, three-eighths of these receipts must be deposited in the state treasury and credited to the state general fund.  The other five-eighths of these receipts must be deposited in the state treasury and credited as follows:  (1) the first $600,000 $1,000,000 in each fiscal year must be credited to the Minnesota grade crossing safety account in the special revenue fund, and (2) remaining receipts must be credited to the state trunk highway fund.  If, however, the violation occurs within a municipality and the city attorney prosecutes the offense, and a plea of not guilty is entered, one-third of the receipts shall be deposited in the state treasury and credited to the state general fund, one-third of the receipts shall be paid to the municipality prosecuting the offense, and one-third shall be deposited in the state treasury and credited to the Minnesota grade crossing safety account or the state trunk highway fund as provided in this paragraph.  When section 387.213 also is applicable to the fine, section 387.213 shall be applied before this paragraph is applied.  All costs of participation in a nationwide police communication system chargeable to the state of Minnesota shall be paid from appropriations for that purpose.

 

(b) Notwithstanding any other provisions of law, All fines and forfeited bail money from violations of statutes governing the maximum weight of motor vehicles, collected from persons apprehended or arrested by employees of the state of Minnesota, by means of stationary or portable scales operated by these employees, shall be transmitted by the person or officer collecting the fines or forfeited bail money, on or before the tenth day after the last day of the month in which the collections were made, to the commissioner of management and budget.  Five-eighths of these receipts shall be deposited in the state treasury and credited to the state highway user tax distribution fund.  Three-eighths of these receipts shall be deposited in the state treasury and credited to the state general fund.

 

Sec. 59.  Minnesota Statutes 2008, section 360.061, subdivision 3, is amended to read:

 

Subd. 3.  Municipality.  "Municipality" does not include a county unless the county owns or controls an airport, in which case such county may exercise all the powers granted by said sections to other municipalities.  It specifically includes a town, an airport authority, the Metropolitan Airports Commission established and operated pursuant to chapter 473, and the state of Minnesota.


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Sec. 60.  [383D.75] NEW LOCATION FOR DEPUTY REGISTRAR. 

 

Notwithstanding section 168.33, and rules adopted by the commissioner of public safety, limiting sites for the office of deputy registrar based on either the distance to an existing deputy registrar office or the annual volume of transactions processed by any deputy registrar, the commissioner of public safety shall permit the deputy registrar of motor vehicles agent number 128 and driver's license agent number 726 for Dakota County to move from the existing deputy registrar location in Burnsville to the Dakota County Burnhaven Library in Burnsville, with full authority to function as a registration and motor vehicle tax collection and driver's license bureau, at the Dakota County Burnhaven Library.  All other provisions regarding the appointment and operation of a deputy registrar of motor vehicles and driver's license agent under sections 168.33 and 171.061, and Minnesota Rules, chapter 7406, not inconsistent with this section, apply to the office.

 

EFFECTIVE DATE; LOCAL APPROVAL.  This section is effective the day after the governing body of the county of Dakota and its chief clerical officer timely complete their compliance with section 645.021, subdivisions 2 and 3.

 

Sec. 61.  Minnesota Statutes 2008, section 473.167, subdivision 2a, is amended to read:

 

Subd. 2a.  Hardship Loans for acquisition and relocation.  (a) The council may make hardship loans to acquiring authorities within the metropolitan area to purchase homestead property located in a proposed state trunk highway right-of-way or project, and to provide relocation assistance.  Acquiring authorities are authorized to accept the loans and to acquire the property.  Except as provided in this subdivision, the loans shall be made as provided in subdivision 2.  Loans shall be in the amount of the fair market value of the homestead property plus relocation costs and less salvage value.  Before construction of the highway begins, the acquiring authority shall convey the property to the commissioner of transportation at the same price it paid, plus relocation costs and less its salvage value.  Acquisition and assistance under this subdivision must conform to sections 117.50 to 117.56. 

 

(b) The council may make hardship loans only when:

 

(1) the owner of affected homestead property requests acquisition and relocation assistance from an acquiring authority;

 

(2) federal or state financial participation is not available;

 

(3) the owner is unable to sell the homestead property at its appraised market value because the property is located in a proposed state trunk highway right-of-way or project as indicated on an official map or plat adopted under section 160.085, 394.361, or 462.359; and

 

(4) the council agrees to and approves the fair market value of the homestead property, which approval shall not be unreasonably withheld; and.

 

(5) the owner of the homestead property is burdened by circumstances that constitute a hardship, such as catastrophic medical expenses; a transfer of the homestead owner by the owner's employer to a distant site of employment; or inability of the owner to maintain the property due to physical or mental disability or the permanent departure of children from the homestead.

 

(c) For purposes of this subdivision, the following terms have the meanings given them.

 

(1) "Acquiring authority" means counties, towns, and statutory and home rule charter cities in the metropolitan area.


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(2) "Homestead property" means:  (i) a single-family dwelling occupied by the owner, and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured home, as defined in section 327B.01, subdivision 13.

 

(3) "Salvage value" means the probable sale price of the dwelling and other property that is severable from the land if offered for sale on the condition that it be removed from the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge of the possible uses of the property, including separate use of serviceable components and scrap when there is no other reasonable prospect of sale.

 

Sec. 62.  Minnesota Statutes 2008, section 473.411, subdivision 5, is amended to read:

 

Subd. 5.  Use of public roadways and appurtenances.  The council may use for the purposes of sections 473.405 to 473.449 upon the conditions stated in this subdivision any state highway or other public roadway, parkway, or lane, or any bridge or tunnel or other appurtenance of a roadway, without payment of any compensation, provided the use does not interfere unreasonably with the public use or maintenance of the roadway or appurtenance or entail any substantial additional costs for maintenance.  The provisions of this subdivision do not apply to the property of any common carrier railroad or common carrier railroads.  The consent of the public agency in charge of such state highway or other public highway or roadway or appurtenance is not required; except that if the council seeks to use a designated parkway for regular route service in the city of Minneapolis, it must obtain permission from and is subject to reasonable limitations imposed by a joint board consisting of two representatives from the council, two members of the board of park commissioners, and a fifth member jointly selected by the representatives of the council and the park other members of the board.  If the use is a designated Minneapolis parkway for regular route service adjacent to the city of Minneapolis, it must obtain permission from and is subject to reasonable limitations imposed by a joint board consisting of two representatives from the council, two members of the board of park commissioners, and a fifth member jointly selected by other members of the board.  The joint board must include a nonvoting member appointed by the council of the city in which the parkway is located.

 

The board of park commissioners and the council may designate persons to sit on the joint board.  In considering a request by the council to use designated parkways for additional routes or trips, the joint board consisting of the council or their designees, the board of park commissioners or their designees, and the fifth member, shall base its decision to grant or deny the request based on the criteria to be established by the joint board.  The decision to grant or deny the request must be made within 45 days of the date of the request.  The park board must be notified immediately by the council of any temporary route detours.  If the park board objects to the temporary route detours within five days of being notified, the joint board must convene and decide whether to grant the request, otherwise the request is deemed granted.  If the agency objects to the proposed use or claims reimbursement from the council for additional cost of maintenance, it may commence an action against the council in the district court of the county wherein the highway, roadway, or appurtenance, or major portion thereof, is located.  The proceedings in the action must conform to the Rules of Civil Procedure applicable to the district courts.  The court shall sit without jury.  If the court determines that the use in question interferes unreasonably with the public use or maintenance of the roadway or appurtenance, it shall enjoin the use by the council.  If the court determines that the use in question does not interfere unreasonably with the public use or maintenance of the roadway or appurtenance, but that it entails substantial additional maintenance costs, the court shall award judgment to the agency for the amount of the additional costs.  Otherwise the court shall award judgment to the council.  An aggrieved party may appeal from the judgment of the district court in the same manner as is provided for such appeals in other civil actions.  The council may also use land within the right-of-way of any state highway or other public roadway for the erection of traffic control devices, other signs, and passenger shelters upon the conditions stated in this subdivision and subject only to the approval of the commissioner of transportation where required by statute, and subject to the express provisions of other applicable statutes and to federal requirements where necessary to qualify for federal aid.


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Sec. 63.  Minnesota Statutes 2008, section 514.18, subdivision 1a, is amended to read:

 

Subd. 1a.  Towed motor vehicles.  A person who tows and stores a motor vehicle at the request of a law enforcement officer shall have a lien on the motor vehicle for the value of the storage and towing and the right to retain possession of the motor vehicle until the lien is lawfully discharged.  This section does not apply to tows authorized in section 169.041, subdivision 4, clause (1) of vehicles parked in violation of snow emergency regulations.

 

Sec. 64.  Laws 2008, chapter 287, article 1, section 122, is amended to read:

 

Sec. 122.  NULLIFICATION OF EXPEDITED TOWN ROAD EXTINGUISHMENT. 

 

(a) Any extinguishment of town interest in a town road under Minnesota Statutes, section 164.06, subdivision 2, is hereby nullified if:

 

(1) the interest was not recorded or filed with the county recorder but was recorded or filed with the county auditor prior to 1972;

 

(2) the state or a political subdivision has constructed or funded a road or bridge improvement on a right-of-way affected by the interest;

 

(3) the affected road was the only means of access to a property;

 

(4) the extinguishment took place within the last ten years; and

 

(5) a person whose only access to property was lost because of the extinguishment files a petition of a nullification with the town board stating that the person's property became landlocked because of the extinguishment and that the road satisfies all of the requirements of paragraph (a), clauses (1) to (4).  A copy of the road order found filed or recorded with the county auditor must be attached to the petition.  The town shall file the petition with the county auditor and record it with the county recorder.

 

(b) Notwithstanding Minnesota Statutes, sections 164.08, subdivision 1, and 541.023, for any nullification under paragraph (a), the affected road is hereby deemed to be a cartway.  No additional damages or other payments may be required other than those paid at the time the fee interest was originally acquired and the order filed with the county auditor.  A cartway created by this paragraph may be converted to a private driveway under Minnesota Statutes, section 164.08, subdivision 2.

 

(c) For purposes of this section, "affected road" means the road in which the town board extinguished its interest.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 65.  Laws 2008, chapter 350, article 1, section 5, the effective date, is amended to read:

 

EFFECTIVE DATE.  Paragraph (b) and paragraph (c), clause (1), are effective the day following final enactment and apply to any additional tax for a registration period that starts on or after March 1, 2011 2012.

 

Sec. 66.  Laws 2009, chapter 36, article 1, section 3, subdivision 3, is amended to read:

 

      Subd. 3.  State Roads

 

(a) Infrastructure Operations and Maintenance                                                         251,643,000                 245,892,000

 

The base appropriation for fiscal years 2012 and 2013 is $257,395,000 for each year.


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(b) Infrastructure Investment and Planning

 

(1) Infrastructure Investment Support                                                                          201,461,000                 196,935,000

 

The base appropriation for fiscal years 2012 and 2013 is $205,988,000 for each year.

 

$266,000 the first year and $266,000 the second year are available for grants to metropolitan planning organizations outside the seven-county metropolitan area.

 

$75,000 the first year and $75,000 the second year are for a transportation research contingent account to finance research projects that are reimbursable from the federal government or from other sources.  If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

 

$600,000 the first year and $600,000 the second year are available for grants for transportation studies outside the metropolitan area to identify critical concerns, problems, and issues.  These grants are available (1) to regional development commissions; (2) in regions where no regional development commission is functioning, to joint powers boards established under agreement of two or more political subdivisions in the region to exercise the planning functions of a regional development commission; and (3) in regions where no regional development commission or joint powers board is functioning, to the department's district office for that region.

 

$200,000 the second year is for grants to nonprofit job training centers for:  (1) job training programs related to highway construction; and (2) business training for companies that are certified disadvantaged business enterprises.

 

(2) State Road Construction                                                                                             551,300,000                 598,700,000

 

The base appropriation for fiscal years 2012 and 2013 is $635,000,000 for each year.

 

It is estimated that these appropriations will be funded as follows:

 

                                        Appropriations by Fund

 

Federal Highway Aid   301,100,000                         388,500,000

 

Highway User Taxes    250,200,000                         210,200,000

 

The commissioner of transportation shall notify the chairs and ranking minority members of the senate and house of representatives committees with jurisdiction over transportation finance of any significant events that should cause these estimates to change.


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This appropriation is for the actual construction, reconstruction, and improvement of trunk highways, including design-build contracts and consultant usage to support these activities.  This includes the cost of actual payment to landowners for lands acquired for highway rights-of-way, payment to lessees, interest subsidies, and relocation expenses.

 

The commissioner may spend up to $250,000 of trunk highway funds in fiscal year 2011 to pay the operating costs of bus service between Hastings and Minneapolis-St. Paul to mitigate the traffic impacts of the project involving construction of a bridge crossing the Mississippi River in the city of Hastings on marked Trunk Highway 61.

 

The commissioner shall expend up to one-half of one percent of the federal appropriations under this paragraph as grants to opportunity industrialization centers and other nonprofit job training centers for job training programs related to highway construction.

 

The commissioner may transfer up to $15,000,000 each year to the transportation revolving loan fund.

 

The commissioner may receive money covering other shares of the cost of partnership projects.  These receipts are appropriated to the commissioner for these projects.

 

(3) Highway Debt Service                                                                                                 101,170,000                 173,400,000

 

$86,517,000 the first year and $157,304,000 the second year are for transfer to the state bond fund.  If this appropriation is insufficient to make all transfers required in the year for which it is made, the commissioner of finance shall notify the Committee on Finance of the senate and the Committee on Ways and Means of the house of representatives of the amount of the deficiency and shall then transfer that amount under the statutory open appropriation.  Any excess appropriation cancels to the trunk highway fund.

 

(c) Electronic Communications                                                                                           5,177,000                      5,177,000

 

                                        Appropriations by Fund

 

General                                        9,000                                      9,000

 

Trunk Highway                 5,168,000                              5,168,000

 

The general fund appropriation is to equip and operate the Roosevelt signal tower for Lake of the Woods weather broadcasting.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.


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Sec. 67.  ADDITIONAL DEPUTY REGISTRAR OF MOTOR VEHICLES FOR CITY OF FARMINGTON. 

 

Notwithstanding Minnesota Statutes, section 168.33, and rules adopted by the commissioner of public safety, limiting sites for the office of deputy registrar based on either the distance to an existing deputy registrar office or the annual volume of transactions processed by any deputy registrar, the commissioner of public safety shall appoint a municipal deputy registrar of motor vehicles for the city of Farmington to operate a new full-service Office of Deputy Registrar, with full authority to function as a registration and motor vehicle tax collection bureau, at the city hall in the city of Farmington.  All other provisions regarding the appointment and operation of a deputy registrar of motor vehicles under Minnesota Statutes, section 168.33, and Minnesota Rules, chapter 7406, apply to the office.

 

EFFECTIVE DATE; LOCAL APPROVAL.  This section is effective the day after the governing body of the city of Farmington and its chief clerical officer timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

 

Sec. 68.  ROUNDABOUTS DESIGN. 

 

(a) The commissioner of transportation shall, as part of the next regular update of appropriate design and highway construction manuals, develop specifications or standards on the design of roundabouts.  The specifications or standards must include consideration of the suitability of roundabout designs for commercial motor vehicles, as defined in Minnesota Statutes, section 169.011, subdivision 16, and disabled persons as defined by Minnesota Statutes, section 256.481.

 

(b) In developing the specifications or standards, the commissioner shall consult with:

 

(1) the Minnesota Trucking Association;

 

(2) representatives, as identified by the commissioner, of persons who regularly obtain oversize or overweight permits under Minnesota Statutes, chapter 169, and are reasonably likely to travel on routes that would include a roundabout; and

 

(3) the Council on Disability established under Minnesota Statutes, section 256.482.

 

(c) The commissioner shall distribute the specifications or standards, or a similar advisory guidance document, to local road authorities.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 69.  TIFIA PILOT PROGRAM. 

 

(a) The commissioner of transportation may conduct a pilot program to apply for and receive financial assistance under the Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA), United States Code, title 23, chapter 6, or through other federal transportation loan, grant, or credit assistance programs.  The assistance may include but is not limited to loans, loan guarantees, and lines of credit.  The commissioner may enter into agreements to repay the financial assistance subject to the availability of state money or other dedicated revenue or resources, with the approval of Minnesota Management and Budget.

 

(b) The pilot program under this section is available for one transportation project identified by the commissioner.


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(c) Upon completion of the transportation project under the pilot program, the commissioner shall submit a report on the pilot program to the chairs and ranking minority members of the house of representatives and senate committees having jurisdiction over transportation policy and finance.  At a minimum, the report must:  describe the transportation project undertaken and each financing mechanism utilized; analyze the effectiveness of each financing mechanism; evaluate the costs, risks, and benefits of additional participation in federal financial assistance programs; and provide any recommendations for related legislative changes.  The report may be submitted electronically, and is subject to Minnesota Statutes, section 3.195, subdivision 1.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 70.  NORTHSTAR COMMUTER RAIL INFILL STATIONS IN CITIES OF RAMSEY AND COON RAPIDS. 

 

The Metropolitan Council shall consider designating Northstar commuter rail stations at the city of Ramsey in the vicinity of the city of Ramsey Municipal Center and in the city of Coon Rapids at Foley Boulevard.

 

Sec. 71.  REPORT ON FINANCING OF BRIDGE CONSTRUCTION. 

 

By January 15, 2011, the commissioner of transportation shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance on the feasibility of utilizing any potential value capture options or potential public-private partnerships, which may include charging tolls, for construction of a new bridge over the St. Croix River at or near Stillwater.  The report must be submitted electronically.

 

Sec. 72.  COMPLETE STREETS REPORTS. 

 

The commissioner of transportation shall submit to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over transportation policy and finance reports that:

 

(1) by January 15, 2011, summarize the department's complete streets initiatives, summarize steps taken to expedite and improve the transparency of the state-aid variance process related to complete streets, outline plans to develop and implement a complete streets policy, and identify any statutory barriers to complete streets implementation;

 

(2) by January 15, 2012, summarize the results of the collaboration under Minnesota Statutes, section 174.75, subdivision 3; identify modifications made to or recommended for protocols, guidance, standards, or other requirements to facilitate complete streets implementation; report status of development of complete streets performance indicators; outline other work planned related to the complete streets policy; and identify statutory recommendations to facilitate complete streets policy implementation; and

 

(3) by January 15, 2014, overview the department's implementation of complete streets policy; note updates to protocols, guidance, standards, or requirements; identify any recommendations for supporting local complete streets implementation under the state-aid standards variance process; and identify statutory recommendations to facilitate complete streets policy implementation.

 

The reports in clauses (1), (2), and (3) must be made available electronically and made available in print only upon request.


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Sec. 73.  RULEMAKING EXCEPTION. 

 

The actions of the commissioner of public safety in establishing physical qualifications for type III vehicle drivers are not rulemaking for purposes of Minnesota Statutes, chapter 14, are not subject to the Administrative Procedure Act contained in Minnesota Statutes, chapter 14, and are not subject to Minnesota Statutes, section 14.386.

 

Sec. 74.  REPEALER. 

 

Minnesota Statutes 2008, section 169.041, subdivisions 3 and 4, are repealed."

 

Delete the title and insert:

 

"A bill for an act relating to transportation; modifying or adding provisions relating to school bus transportation, transportation construction impacts on business, rest areas, highways, bridges, transportation contracts, variances from rules and engineering standards for local streets and highways, tax-exempt vehicles, license plates, deputy registrars, impounds, towing, quick clearance of highway obstructions, pedestrians, intersection gridlock, bus and type III vehicle operation, various traffic regulations, cargo tank vehicle weight exemptions, drivers' licenses, transportation department goals and mission, the Disadvantaged Business Enterprise Collaborative, transit, a Minnesota Council of Transportation Access, complete streets, a Commuter Rail Corridor Coordinating Committee, railroad track safety, motor carriers, allocation of traffic fines, airport authorities, property acquisition for highways, town road interest extinguishment nullification, Northstar commuter rail, roundabouts design, and a pilot program to obtain federal assistance for transportation projects; providing for bus service during Hastings bridge construction; requiring reports; making technical and clarifying changes; appropriating money; amending Minnesota Statutes 2008, sections 161.14, by adding subdivisions; 161.3426, subdivision 3, by adding a subdivision; 162.02, subdivision 3a; 162.09, subdivision 3a; 165.14, subdivisions 4, 5; 168.002, by adding a subdivision; 168.12, subdivision 2a; 168.123, subdivisions 1, 2, by adding a subdivision; 168.1255, subdivision 1; 168.1293; 168.33, subdivision 2; 168B.06, subdivision 1; 168B.07, subdivision 3; 169.041, subdivision 5, by adding a subdivision; 169.15; 169.26, by adding a subdivision; 169.306; 169.79, subdivision 3; 169.87, by adding a subdivision; 171.321, subdivision 2; 174.01, subdivisions 1, 2; 174.02, subdivision 1a; 174.22, by adding a subdivision; 174.23, subdivisions 1, 2; 174.24, subdivisions 2, 3b, by adding a subdivision; 174.247; 174.86, subdivision 5; 219.01; 221.012, subdivision 38, by adding a subdivision; 360.061, subdivision 3; 473.167, subdivision 2a; 473.411, subdivision 5; 514.18, subdivision 1a; Minnesota Statutes 2009 Supplement, sections 123B.92, subdivision 1; 160.165; 161.14, subdivision 62; 168.012, subdivision 1; 168.12, subdivision 5; 169.71, subdivision 1; 171.02, subdivision 2b; 174.24, subdivisions 1a, 5; 299D.03, subdivision 5; Laws 2008, chapter 287, article 1, section 122; Laws 2008, chapter 350, article 1, section 5; Laws 2009, chapter 36, article 1, section 3, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 160; 174; 221; 383D; repealing Minnesota Statutes 2008, section 169.041, subdivisions 3, 4."

 

We request the adoption of this report and repassage of the bill.

 

Senate Conferees:  Steve Murphy, D. Scott Dibble, Michael Jungbauer, Kathy Saltzman and Katie Sieben.

 

House Conferees:  Frank Hornstein, Melissa Hortman, Terry Morrow, Bernard Lieder and Dean Urdahl.

 

 

      Hornstein moved that the report of the Conference Committee on S. F. No. 2540 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12341


 

S. F. No. 2540, A bill for an act relating to transportation; modifying or adding provisions relating to truck insurance, school bus transportation, transportation construction impacts on business, rest areas, highways, bridges, transportation contracts, variances from rules and engineering standards for local streets and highways, the state park road account, tax-exempt vehicles, license plates, deputy registrars, vehicles and drivers, impounds, towing, pedestrians, intersection gridlock, bus and type III vehicle operation, various traffic regulations, cargo tank vehicle weight exemptions, drivers' licenses, transportation department goals and mission, the Disadvantaged Business Enterprise Collaborative, a Minnesota Council of Transportation Access, complete streets, a Commuter Rail Corridor Coordinating Committee, railroad track safety, motor carriers, allocation of traffic fines, airport authorities, property acquisition for highways, transit, town road interest extinguishment nullification, Northstar commuter rail, and roundabouts design; providing for State Patrol tax compliance and vehicle crimes investigations; providing for issuance and sale of trunk highway bonds; requiring reports; making technical and clarifying changes; appropriating money; amending Minnesota Statutes 2008, sections 65B.43, subdivision 2; 161.14, by adding subdivisions; 161.3426, subdivision 3, by adding a subdivision; 162.02, subdivision 3a; 162.09, subdivision 3a; 165.14, subdivisions 4, 5; 168.12, subdivisions 2a, 2b, by adding a subdivision; 168.123, subdivisions 1, 2; 168.1255, subdivision 1; 168.1291, subdivisions 1, 2; 168.33, subdivision 2; 168B.04, subdivision 2; 168B.06, subdivision 1; 168B.07, subdivision 3; 169.041, subdivision 5; 169.09, subdivision 5a; 169.15; 169.26, by adding a subdivision; 169.306; 169.79, subdivision 3; 169.87, by adding a subdivision; 169.92, subdivision 4; 171.321, subdivision 2; 174.01, subdivisions 1, 2; 174.02, subdivision 1a; 174.86, subdivision 5; 219.01; 221.012, subdivision 38, by adding a subdivision; 221.0252, subdivision 7; 221.036, subdivisions 1, 3; 221.221, subdivision 3; 221.251, subdivision 1; 360.061, subdivision 3; 473.167, subdivision 2a; 473.411, subdivision 5; 514.18, subdivision 1a; Minnesota Statutes 2009 Supplement, sections 123B.92, subdivision 1; 160.165; 161.14, subdivision 62; 162.06, subdivision 5; 168.012, subdivision 1; 168.12, subdivision 5; 169.71, subdivision 1; 169.865, subdivision 1; 171.02, subdivision 2b; 174.66; 221.026, subdivision 2; 221.031, subdivision 1; 221.122, subdivision 1; 299D.03, subdivision 5; Laws 2008, chapter 287, article 1, section 122; Laws 2009, chapter 36, article 1, sections 1; 3, subdivisions 1, 2, 3; 5, subdivisions 1, 3, 4; proposing coding for new law in Minnesota Statutes, chapters 160; 168; 174; 221; 383D; repealing Minnesota Statutes 2008, sections 169.041, subdivisions 3, 4; 221.161, subdivisions 2, 3; 221.291, subdivision 5; Minnesota Statutes 2009 Supplement, sections 221.161, subdivisions 1, 4; 221.171; Minnesota Rules, parts 7805.0300; 7805.0400.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 109 yeas and 25 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Dill

Dittrich

Doepke

Doty

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Winkler

Spk. Kelliher



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      Those who voted in the negative were:

 


Anderson, B.

Brod

Buesgens

Davids

Dean

Demmer

Dettmer

Downey

Drazkowski

Eastlund

Emmer

Gunther

Hackbarth

Hoppe

Kelly

Kiffmeyer

Kohls

Mack

Peppin

Sanders

Scott

Seifert

Severson

Westrom

Zellers


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

      Abeler was excused between the hours of 2:35 p.m. and 3:10 p.m.

 

 

Madam Speaker:

 

      I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

 

      S. F. No. 2933.

 

      The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee.  Said Senate File is herewith transmitted to the House.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 2933

 

A bill for an act relating to human services; making changes to continuing care policy and technical provisions; amending Minnesota Statutes 2008, sections 245A.03, by adding a subdivision; 626.557, subdivision 9a; Minnesota Statutes 2009 Supplement, sections 144.0724, subdivision 11; 256B.0625, subdivision 19c; 256B.0651, by adding a subdivision; 256B.0652, subdivision 6; 256B.0659, subdivisions 4, 10, 11, 13, 21, 30, by adding a subdivision; 256B.0911, subdivision 2b.

 

May 10, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 2933 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendments and that S. F. No. 2933 be further amended as follows:

 

Delete everything after the enacting clause and insert:


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"ARTICLE 1

 

CONTINUING CARE POLICY

 

Section 1.  Minnesota Statutes 2009 Supplement, section 144.0724, subdivision 11, is amended to read:

 

Subd. 11.  Nursing facility level of care.  (a) For purposes of medical assistance payment of long-term care services, a recipient must be determined, using assessments defined in subdivision 4, to meet one of the following nursing facility level of care criteria:

 

(1) the person requires formal clinical monitoring at least once per day;

 

(1) (2) the person needs the assistance of another person or constant supervision to begin and complete at least four of the following activities of living:  bathing, bed mobility, dressing, eating, grooming, toileting, transferring, and walking;

 

(2) (3) the person needs the assistance of another person or constant supervision to begin and complete toileting, transferring, or positioning and the assistance cannot be scheduled;

 

(3) (4) the person has significant difficulty with memory, using information, daily decision making, or behavioral needs that require intervention;

 

(4) (5) the person has had a qualifying nursing facility stay of at least 90 days;

 

(6) the person meets the nursing facility level of care criteria determined 90 days after admission or on the first quarterly assessment after admission, whichever is later; or

 

(5) (7) the person is determined to be at risk for nursing facility admission or readmission through a face-to-face long-term care consultation assessment as specified in section 256B.0911, subdivision 3a, 3b, or 4d, by a county, tribe, or managed care organization under contract with the Department of Human Services.  The person is considered at risk under this clause if the person currently lives alone or will live alone upon discharge and also meets one of the following criteria:

 

(i) the person has experienced a fall resulting in a fracture;

 

(ii) the person has been determined to be at risk of maltreatment or neglect, including self-neglect; or

 

(iii) the person has a sensory impairment that substantially impacts functional ability and maintenance of a community residence.

 

(b) The assessment used to establish medical assistance payment for nursing facility services must be the most recent assessment performed under subdivision 4, paragraph (b), that occurred no more than 90 calendar days before the effective date of medical assistance eligibility for payment of long-term care services.  In no case shall medical assistance payment for long-term care services occur prior to the date of the determination of nursing facility level of care.

 

(c) The assessment used to establish medical assistance payment for long-term care services provided under sections 256B.0915 and 256B.49 and alternative care payment for services provided under section 256B.0913 must be the most recent face-to-face assessment performed under section 256B.0911, subdivision 3a, 3b, or 4d, that occurred no more than 60 calendar days before the effective date of medical assistance eligibility for payment of long-term care services.


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Sec. 2.  Minnesota Statutes 2008, section 144A.071, subdivision 4b, is amended to read:

 

Subd. 4b.  Licensed beds on layaway status.  A licensed and certified nursing facility may lay away, upon prior written notice to the commissioner of health, up to 50 percent of its licensed and certified beds.  A nursing facility may not discharge a resident in order to lay away a bed.  Notice to the commissioner shall be given 60 days prior to the effective date of the layaway.  Beds on layaway shall have the same status as voluntarily delicensed and decertified beds and shall not be subject to license fees and license surcharge fees.  In addition, beds on layaway may be removed from layaway at any time on or after one year after the effective date of layaway in the facility of origin, with a 60-day notice to the commissioner.  A nursing facility that removes beds from layaway may not place beds on layaway status for one year after the effective date of the removal from layaway.  The commissioner may approve the immediate removal of beds from layaway if necessary to provide access to those nursing home beds to residents relocated from other nursing homes due to emergency situations or closure.  In the event approval is granted, the one-year restriction on placing beds on layaway after a removal of beds from layaway shall not apply.  Beds may remain on layaway for up to five ten years.  The commissioner may approve placing and removing beds on layaway at any time during renovation or construction related to a moratorium project approved under this section or section 144A.073.  Nursing facilities are not required to comply with any licensure or certification requirements for beds on layaway status.

 

Sec. 3.  Minnesota Statutes 2008, section 144A.161, subdivision 1a, is amended to read:

 

Subd. 1a.  Scope.  Where a facility is undertaking closure, curtailment, reduction, or change in operations, or where a housing with services unit registered under chapter 144D is closed because the space that it occupies is being replaced by a nursing facility bed that is being reactivated from layaway status, the facility and the county social services agency must comply with the requirements of this section.

 

Sec. 4.  Minnesota Statutes 2009 Supplement, section 245A.03, subdivision 7, is amended to read:

 

Subd. 7.  Licensing moratorium.  (a) The commissioner shall not issue an initial license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under this chapter for a physical location that will not be the primary residence of the license holder for the entire period of licensure.  If a license is issued during this moratorium, and the license holder changes the license holder's primary residence away from the physical location of the foster care license, the commissioner shall revoke the license according to section 245A.07.  Exceptions to the moratorium include:

 

(1) foster care settings that are required to be registered under chapter 144D;

 

(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, and determined to be needed by the commissioner under paragraph (b);

 

(3) new foster care licenses determined to be needed by the commissioner under paragraph (b) for the closure of a nursing facility, ICF/MR, or regional treatment center;

 

(4) new foster care licenses determined to be needed by the commissioner under paragraph (b) for persons requiring hospital level care; or

 

(5) new foster care licenses determined to be needed by the commissioner for the transition of people from personal care assistance to the home and community-based services. 

 

(b) The commissioner shall determine the need for newly licensed foster care homes as defined under this subdivision.  As part of the determination, the commissioner shall consider the availability of foster care capacity in the area in which the licensee seeks to operate, and the recommendation of the local county board.  The determination by the commissioner must be final.  A determination of need is not required for a change in ownership at the same address.


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(c) Residential settings that would otherwise be subject to the moratorium established in paragraph (a), that are in the process of receiving an adult or child foster care license as of July 1, 2009, shall be allowed to continue to complete the process of receiving an adult or child foster care license.  For this paragraph, all of the following conditions must be met to be considered in the process of receiving an adult or child foster care license:

 

(1) participants have made decisions to move into the residential setting, including documentation in each participant's care plan;

 

(2) the provider has purchased housing or has made a financial investment in the property;

 

(3) the lead agency has approved the plans, including costs for the residential setting for each individual;

 

(4) the completion of the licensing process, including all necessary inspections, is the only remaining component prior to being able to provide services; and

 

(5) the needs of the individuals cannot be met within the existing capacity in that county.

 

To qualify for the process under this paragraph, the lead agency must submit documentation to the commissioner by August 1, 2009, that all of the above criteria are met.

 

(d) The commissioner shall study the effects of the license moratorium under this subdivision and shall report back to the legislature by January 15, 2011.  This study shall include, but is not limited to the following:

 

(1) the overall capacity and utilization of foster care beds where the physical location is not the primary residence of the license holder prior to and after implementation of the moratorium;

 

(2) the overall capacity and utilization of foster care beds where the physical location is the primary residence of the license holder prior to and after implementation of the moratorium; and

 

(3) the number of licensed and occupied ICF/MR beds prior to and after implementation of the moratorium.

 

Sec. 5.  Minnesota Statutes 2008, section 245A.03, is amended by adding a subdivision to read:

 

Subd. 9.  Permitted services by an individual who is related.  Notwithstanding subdivision 2, paragraph (a), clause (1), and subdivision 7, an individual who is related to a person receiving supported living services may provide licensed services to that person if:

 

(1) the person who receives supported living services received these services in a residential site on July 1, 2005;

 

(2) the services under clause (1) were provided in a corporate foster care setting for adults and were funded by the developmental disabilities home and community-based services waiver defined in section 256B.092;

 

(3) the individual who is related obtains and maintains both a license under chapter 245B and an adult foster care license under Minnesota Rules, parts 9555.5105 to 9555.6265; and

 

(4) the individual who is related is not the guardian of the person receiving supported living services.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.


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Sec. 6.  Minnesota Statutes 2009 Supplement, section 245A.11, subdivision 7b, is amended to read:

 

Subd. 7b.  Adult foster care data privacy and security.  (a) An adult foster care license holder who creates, collects, records, maintains, stores, or discloses any individually identifiable recipient data, whether in an electronic or any other format, must comply with the privacy and security provisions of applicable privacy laws and regulations, including:

 

(1) the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA), Public Law 104-1; and the HIPAA Privacy Rule, Code of Federal Regulations, title 45, part 160, and subparts A and E of part 164; and

 

(2) the Minnesota Government Data Practices Act as codified in chapter 13.

 

(b) For purposes of licensure, the license holder shall be monitored for compliance with the following data privacy and security provisions:

 

(1) the license holder must control access to data on foster care recipients according to the definitions of public and private data on individuals under section 13.02; classification of the data on individuals as private under section 13.46, subdivision 2; and control over the collection, storage, use, access, protection, and contracting related to data according to section 13.05, in which the license holder is assigned the duties of a government entity;

 

(2) the license holder must provide each foster care recipient with a notice that meets the requirements under section 13.04, in which the license holder is assigned the duties of the government entity, and that meets the requirements of Code of Federal Regulations, title 45, part 164.52.  The notice shall describe the purpose for collection of the data, and to whom and why it may be disclosed pursuant to law.  The notice must inform the recipient that the license holder uses electronic monitoring and, if applicable, that recording technology is used;

 

(3) the license holder must not install monitoring cameras in bathrooms;

 

(4) electronic monitoring cameras must not be concealed from the foster care recipients; and

 

(5) electronic video and audio recordings of foster care recipients shall not be stored by the license holder for more than five days unless:  (i) a foster care recipient or legal representative requests that the recording be held longer based on a specific report of alleged maltreatment; or (ii) the recording captures an incident or event of alleged maltreatment under section 626.556 or 626.557 or a crime under chapter 609.  When requested by a recipient or when a recording captures an incident or event of alleged maltreatment or a crime, the license holder must maintain the recording in a secured area for no longer than 30 days to give the investigating agency an opportunity to make a copy of the recording.  The investigating agency will maintain the electronic video or audio recordings as required in section 626.557, subdivision 12b.

 

(c) The commissioner shall develop, and make available to license holders and county licensing workers, a checklist of the data privacy provisions to be monitored for purposes of licensure.

 

Sec. 7.  Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 19c, is amended to read:

 

Subd. 19c.  Personal care.  Medical assistance covers personal care assistance services provided by an individual who is qualified to provide the services according to subdivision 19a and sections 256B.0651 to 256B.0656, provided in accordance with a plan, and supervised by a qualified professional.

 

"Qualified professional" means a mental health professional as defined in section 245.462, subdivision 18, or 245.4871, subdivision 27; or a registered nurse as defined in sections 148.171 to 148.285, a licensed social worker as defined in section 148B.21 sections 148D.010 and 148D.055, or a qualified developmental disabilities specialist under section 245B.07, subdivision 4.  The qualified professional shall perform the duties required in section 256B.0659.


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Sec. 8.  Minnesota Statutes 2009 Supplement, section 256B.0651, is amended by adding a subdivision to read:

 

Subd. 17.  Recipient protection.  (a) Providers of home care services must provide each recipient with a copy of the home care bill of rights under section 144A.44 at least 30 days prior to terminating services to a recipient, if the termination results from provider sanctions under section 256B.064, such as a payment withhold, a suspension of participation, or a termination of participation.  If a home care provider determines it is unable to continue providing services to a recipient, the provider must notify the recipient, the recipient's responsible party, and the commissioner 30 days prior to terminating services to the recipient because of an action under section 256B.064, and must assist the commissioner and lead agency in supporting the recipient in transitioning to another home care provider of the recipient's choice.

 

(b) In the event of a payment withhold from a home care provider, a suspension of participation, or a termination of participation of a home care provider under section 256B.064, the commissioner may inform the Office of Ombudsman for Long-Term Care and the lead agencies for all recipients with active service agreements with the provider.  At the commissioner's request, the lead agencies must contact recipients to ensure that the recipients are continuing to receive needed care, and that the recipients have been given free choice of provider if they transfer to another home care provider.  In addition, the commissioner or the commissioner's delegate may directly notify recipients who receive care from the provider that payments have been withheld or that the provider's participation in medical assistance has been suspended or terminated, if the commissioner determines that notification is necessary to protect the welfare of the recipients.  For purposes of this subdivision, "lead agencies" means counties, tribes, and managed care organizations.

 

Sec. 9.  Minnesota Statutes 2009 Supplement, section 256B.0652, subdivision 6, is amended to read:

 

Subd. 6.  Authorization; personal care assistance and qualified professional.  (a) All personal care assistance services, supervision by a qualified professional, and additional services beyond the limits established in subdivision 11, must be authorized by the commissioner or the commissioner's designee before services begin except for the assessments established in subdivision 11 and section 256B.0911.  The authorization for personal care assistance and qualified professional services under section 256B.0659 must be completed within 30 days after receiving a complete request.

 

(b) The amount of personal care assistance services authorized must be based on the recipient's home care rating.  The home care rating shall be determined by the commissioner or the commissioner's designee based on information submitted to the commissioner identifying the following:

 

(1) total number of dependencies of activities of daily living as defined in section 256B.0659;

 

(2) number presence of complex health-related needs as defined in section 256B.0659; and

 

(3) number presence of Level I behavior descriptions as defined in section 256B.0659.

 

(c) The methodology to determine total time for personal care assistance services for each home care rating is based on the median paid units per day for each home care rating from fiscal year 2007 data for the personal care assistance program.  Each home care rating has a base level of hours assigned.  Additional time is added through the assessment and identification of the following:

 

(1) 30 additional minutes per day for a dependency in each critical activity of daily living as defined in section 256B.0659;

 

(2) 30 additional minutes per day for each complex health-related function as defined in section 256B.0659; and


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(3) 30 additional minutes per day for each behavior issue as defined in section 256B.0659, subdivision 4, paragraph (d).

 

(d) A limit of 96 units of qualified professional supervision may be authorized for each recipient receiving personal care assistance services.  A request to the commissioner to exceed this total in a calendar year must be requested by the personal care provider agency on a form approved by the commissioner.

 

Sec. 10.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 10, is amended to read:

 

Subd. 10.  Responsible party; duties; delegation.  (a) A responsible party shall enter into a written agreement with a personal care assistance provider agency, on a form determined by the commissioner, to perform the following duties:

 

(1) be available while care is provided in a method agreed upon by the individual or the individual's legal representative and documented in the recipient's personal care assistance care plan;

 

(2) monitor personal care assistance services to ensure the recipient's personal care assistance care plan is being followed; and

 

(3) review and sign personal care assistance time sheets after services are provided to provide verification of the personal care assistance services.

 

Failure to provide the support required by the recipient must result in a referral to the county common entry point.

 

(b) Responsible parties who are parents of minors or guardians of minors or incapacitated persons may delegate the responsibility to another adult who is not the personal care assistant during a temporary absence of at least 24 hours but not more than six months.  The person delegated as a responsible party must be able to meet the definition of the responsible party.  The responsible party must ensure that the delegate performs the functions of the responsible party, is identified at the time of the assessment, and is listed on the personal care assistance care plan.  The responsible party must communicate to the personal care assistance provider agency about the need for a delegate delegated responsible party, including the name of the delegated responsible party, dates the delegated responsible party will be living with the recipient, and contact numbers.

 

Sec. 11.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11, is amended to read:

 

Subd. 11.  Personal care assistant; requirements.  (a) A personal care assistant must meet the following requirements:

 

(1) be at least 18 years of age with the exception of persons who are 16 or 17 years of age with these additional requirements:

 

(i) supervision by a qualified professional every 60 days; and

 

(ii) employment by only one personal care assistance provider agency responsible for compliance with current labor laws;

 

(2) be employed by a personal care assistance provider agency;

 

(3) enroll with the department as a personal care assistant after clearing a background study.  Except as provided in subdivision 11a, before a personal care assistant provides services, the personal care assistance provider agency must initiate a background study on the personal care assistant under chapter 245C, and the personal care assistance provider agency must have received a notice from the commissioner that the personal care assistant is:


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(i) not disqualified under section 245C.14; or

 

(ii) is disqualified, but the personal care assistant has received a set aside of the disqualification under section 245C.22;

 

(4) be able to effectively communicate with the recipient and personal care assistance provider agency;

 

(5) be able to provide covered personal care assistance services according to the recipient's personal care assistance care plan, respond appropriately to recipient needs, and report changes in the recipient's condition to the supervising qualified professional or physician;

 

(6) not be a consumer of personal care assistance services;

 

(7) maintain daily written records including, but not limited to, time sheets under subdivision 12;

 

(8) effective January 1, 2010, complete standardized training as determined by the commissioner before completing enrollment.  Personal care assistant training must include successful completion of the following training components:  basic first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of personal care assistants including information about assistance with lifting and transfers for recipients, emergency preparedness, orientation to positive behavioral practices, fraud issues, and completion of time sheets.  Upon completion of the training components, the personal care assistant must demonstrate the competency to provide assistance to recipients;

 

(9) complete training and orientation on the needs of the recipient within the first seven days after the services begin; and

 

(10) be limited to providing and being paid for up to 310 hours per month of personal care assistance services regardless of the number of recipients being served or the number of personal care assistance provider agencies enrolled with.

 

(b) A legal guardian may be a personal care assistant if the guardian is not being paid for the guardian services and meets the criteria for personal care assistants in paragraph (a).

 

(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant include parents and stepparents of minors, spouses, paid legal guardians, family foster care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or staff of a residential setting.

 

EFFECTIVE DATE.  This section is effective retroactively from July 1, 2009.

 

Sec. 12.  Minnesota Statutes 2009 Supplement, section 256B.0659, is amended by adding a subdivision to read:

 

Subd. 11a.  Exception to personal care assistant; requirements.  The personal care assistant for a recipient may be allowed to enroll with a different personal care assistant provider agency upon initiation of a new background study according to chapter 245C, if all of the following are met:

 

(1) the commissioner determines that a change in enrollment or affiliation of the personal care assistant is needed in order to ensure continuity of services and protect the health and safety of the recipient;

 

(2) the chosen agency has been continuously enrolled as a personal care assistance provider agency for at least two years;


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(3) the recipient chooses to transfer to the personal care assistance provider agency;

 

(4) the personal care assistant has been continuously enrolled with the former personal care assistance provider agency since the last background study was completed; and

 

(5) the personal care assistant continues to meet requirements of subdivision 11, excluding paragraph (a), clause (3).

 

EFFECTIVE DATE.  This section is effective retroactively from July 1, 2009.

 

Sec. 13.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 13, is amended to read:

 

Subd. 13.  Qualified professional; qualifications.  (a) The qualified professional must be employed by work for a personal care assistance provider agency and meet the definition under section 256B.0625, subdivision 19c.  Before a qualified professional provides services, the personal care assistance provider agency must initiate a background study on the qualified professional under chapter 245C, and the personal care assistance provider agency must have received a notice from the commissioner that the qualified professional:

 

(1) is not disqualified under section 245C.14; or

 

(2) is disqualified, but the qualified professional has received a set aside of the disqualification under section 245C.22.

 

(b) The qualified professional shall perform the duties of training, supervision, and evaluation of the personal care assistance staff and evaluation of the effectiveness of personal care assistance services.  The qualified professional shall:

 

(1) develop and monitor with the recipient a personal care assistance care plan based on the service plan and individualized needs of the recipient;

 

(2) develop and monitor with the recipient a monthly plan for the use of personal care assistance services;

 

(3) review documentation of personal care assistance services provided;

 

(4) provide training and ensure competency for the personal care assistant in the individual needs of the recipient; and

 

(5) document all training, communication, evaluations, and needed actions to improve performance of the personal care assistants.

 

(c) Effective January 1, 2010, the qualified professional shall complete the provider training with basic information about the personal care assistance program approved by the commissioner within six months of the date hired by a personal care assistance provider agency.  Qualified professionals who have completed the required trainings training as an employee with a worker from a personal care assistance provider agency do not need to repeat the required trainings training if they are hired by another agency, if they have completed the training within the last three years.

 

Sec. 14.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 21, is amended to read:

 

Subd. 21.  Requirements for initial enrollment of personal care assistance provider agencies.  (a) All personal care assistance provider agencies must provide, at the time of enrollment as a personal care assistance provider agency in a format determined by the commissioner, information and documentation that includes, but is not limited to, the following:


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(1) the personal care assistance provider agency's current contact information including address, telephone number, and e-mail address;

 

(2) proof of surety bond coverage in the amount of $50,000 or ten percent of the provider's payments from Medicaid in the previous year, whichever is less;

 

(3) proof of fidelity bond coverage in the amount of $20,000;

 

(4) proof of workers' compensation insurance coverage;

 

(5) proof of liability insurance;

 

(5) (6) a description of the personal care assistance provider agency's organization identifying the names of all owners, managing employees, staff, board of directors, and the affiliations of the directors, owners, or staff to other service providers;

 

(6) (7) a copy of the personal care assistance provider agency's written policies and procedures including:  hiring of employees; training requirements; service delivery; and employee and consumer safety including process for notification and resolution of consumer grievances, identification and prevention of communicable diseases, and employee misconduct;

 

(7) (8) copies of all other forms the personal care assistance provider agency uses in the course of daily business including, but not limited to:

 

(i) a copy of the personal care assistance provider agency's time sheet if the time sheet varies from the standard time sheet for personal care assistance services approved by the commissioner, and a letter requesting approval of the personal care assistance provider agency's nonstandard time sheet;

 

(ii) the personal care assistance provider agency's template for the personal care assistance care plan; and

 

(iii) the personal care assistance provider agency's template for the written agreement in subdivision 20 for recipients using the personal care assistance choice option, if applicable;

 

(8) (9) a list of all trainings training and classes that the personal care assistance provider agency requires of its staff providing personal care assistance services;

 

(9) (10) documentation that the personal care assistance provider agency and staff have successfully completed all the training required by this section;

 

(10) (11) documentation of the agency's marketing practices;

 

(11) (12) disclosure of ownership, leasing, or management of all residential properties that is used or could be used for providing home care services; and

 

(12) (13) documentation that the agency will use the following percentages of revenue generated from the medical assistance rate paid for personal care assistance services for employee personal care assistant wages and benefits:  72.5 percent of revenue in the personal care assistance choice option and 72.5 percent of revenue from other personal care assistance providers.

 

(b) Personal care assistance provider agencies shall provide the information specified in paragraph (a) to the commissioner at the time the personal care assistance provider agency enrolls as a vendor or upon request from the commissioner.  The commissioner shall collect the information specified in paragraph (a) from all personal care assistance providers beginning July 1, 2009.


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(c) All personal care assistance provider agencies shall complete mandatory training as determined by the commissioner before enrollment as a provider.  Personal care assistance provider agencies are required to send all owners, qualified professionals employed by the agency, and all other managing employees to the initial and subsequent trainings training.  Personal care assistance provider agency billing staff shall complete training about personal care assistance program financial management.  This training is effective July 1, 2009.  Any personal care assistance provider agency enrolled before that date shall, if it has not already, complete the provider training within 18 months of July 1, 2009.  Any new owners, new qualified professionals, and new managing employees are required to complete mandatory training as a requisite of hiring.

 

Sec. 15.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 30, is amended to read:

 

Subd. 30.  Notice of service changes to recipients.  The commissioner must provide:

 

(1) by October 31, 2009, information to recipients likely to be affected that (i) describes the changes to the personal care assistance program that may result in the loss of access to personal care assistance services, and (ii) includes resources to obtain further information; and

 

(2) notice of changes in medical assistance home care personal care assistant services to each affected recipient at least 30 days before the effective date of the change.

 

The notice shall include how to get further information on the changes, how to get help to obtain other services, a list of community resources, and appeal rights.  Notwithstanding section 256.045, a recipient may request continued services pending appeal within the time period allowed to request an appeal.

 

Sec. 16.  Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 1a, is amended to read:

 

Subd. 1a.  Definitions.  For purposes of this section, the following definitions apply:

 

(a) "Long-term care consultation services" means:

 

(1) assistance in identifying services needed to maintain an individual in the most inclusive environment;

 

(2) providing recommendations on cost-effective community services that are available to the individual;

 

(3) development of an individual's person-centered community support plan;

 

(4) providing information regarding eligibility for Minnesota health care programs;

 

(5) face-to-face long-term care consultation assessments, which may be completed in a hospital, nursing facility, intermediate care facility for persons with developmental disabilities (ICF/DDs), regional treatment centers, or the person's current or planned residence;

 

(6) federally mandated screening to determine the need for a institutional level of care under section 256B.0911, subdivision 4, paragraph (a);

 

(7) determination of home and community-based waiver service eligibility including level of care determination for individuals who need an institutional level of care as defined under section 144.0724, subdivision 11, or 256B.092, service eligibility including state plan home care services identified in section sections 256B.0625, subdivisions 6, 7, and 19, paragraphs (a) and (c), and 256B.0657, based on assessment and support plan development with appropriate referrals, including the option for consumer-directed community supports;


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(8) providing recommendations for nursing facility placement when there are no cost-effective community services available; and

 

(9) assistance to transition people back to community settings after facility admission.

 

(b) "Long-term care options counseling" means the services provided by the linkage lines as mandated by sections 256.01 and 256.975, subdivision 7, and also includes telephone assistance and follow up once a long-term care consultation assessment has been completed.

 

(c) "Minnesota health care programs" means the medical assistance program under chapter 256B and the alternative care program under section 256B.0913.

 

(d) "Lead agencies" means counties or a collaboration of counties, tribes, and health plans administering long-term care consultation assessment and support planning services.

 

Sec. 17.  Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 2b, is amended to read:

 

Subd. 2b.  Certified assessors.  (a) Beginning January 1, 2011, each lead agency shall use certified assessors who have completed training and the certification processes determined by the commissioner in subdivision 2c.  Certified assessors shall demonstrate best practices in assessment and support planning including person-centered planning principals and have a common set of skills that must ensure consistency and equitable access to services statewide.  Assessors must be part of a multidisciplinary team of professionals that includes public health nurses, social workers, and other professionals as defined in paragraph (b).  For persons with complex health care needs, a public health nurse or registered nurse from a multidisciplinary team must be consulted.  A lead agency may choose, according to departmental policies, to contract with a qualified, certified assessor to conduct assessments and reassessments on behalf of the lead agency.

 

(b) Certified assessors are persons with a minimum of a bachelor's degree in social work, nursing with a public health nursing certificate, or other closely related field with at least one year of home and community-based experience or a two-year registered nursing degree with at least three years of home and community-based experience that have received training and certification specific to assessment and consultation for long-term care services in the state.

 

Sec. 18.  Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 3a, is amended to read:

 

Subd. 3a.  Assessment and support planning.  (a) Persons requesting assessment, services planning, or other assistance intended to support community-based living, including persons who need assessment in order to determine waiver or alternative care program eligibility, must be visited by a long-term care consultation team within 15 calendar days after the date on which an assessment was requested or recommended.  After January 1, 2011, these requirements also apply to personal care assistance services, private duty nursing, and home health agency services, on timelines established in subdivision 5.  Face-to-face assessments must be conducted according to paragraphs (b) to (i).

 

(b) The county may utilize a team of either the social worker or public health nurse, or both.  After January 1, 2011, lead agencies shall use certified assessors to conduct the assessment in a face-to-face interview.  The consultation team members must confer regarding the most appropriate care for each individual screened or assessed.

 

(c) The assessment must be comprehensive and include a person-centered assessment of the health, psychological, functional, environmental, and social needs of referred individuals and provide information necessary to develop a support plan that meets the consumers needs, using an assessment form provided by the commissioner.


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(d) The assessment must be conducted in a face-to-face interview with the person being assessed and the person's legal representative, as required by legally executed documents, and other individuals as requested by the person, who can provide information on the needs, strengths, and preferences of the person necessary to develop a support plan that ensures the person's health and safety, but who is not a provider of service or has any financial interest in the provision of services.

 

(e) The person, or the person's legal representative, must be provided with written recommendations for community-based services, including consumer-directed options, or institutional care that include documentation that the most cost-effective alternatives available were offered to the individual.  For purposes of this requirement, "cost-effective alternatives" means community services and living arrangements that cost the same as or less than institutional care.

 

(f) If the person chooses to use community-based services, the person or the person's legal representative must be provided with a written community support plan, regardless of whether the individual is eligible for Minnesota health care programs.  A person may request assistance in identifying community supports without participating in a complete assessment.  Upon a request for assistance identifying community support, the person must be transferred or referred to the services available under sections 256.975, subdivision 7, and 256.01, subdivision 24, for telephone assistance and follow up.

 

(g) The person has the right to make the final decision between institutional placement and community placement after the recommendations have been provided, except as provided in subdivision 4a, paragraph (c).

 

(h) The team must give the person receiving assessment or support planning, or the person's legal representative, materials, and forms supplied by the commissioner containing the following information:

 

(1) the need for and purpose of preadmission screening if the person selects nursing facility placement;

 

(2) the role of the long-term care consultation assessment and support planning in waiver and alternative care program eligibility determination;

 

(3) information about Minnesota health care programs;

 

(4) the person's freedom to accept or reject the recommendations of the team;

 

(5) the person's right to confidentiality under the Minnesota Government Data Practices Act, chapter 13;

 

(6) the long-term care consultant's decision regarding the person's need for institutional level of care as determined under criteria established in section 144.0724, subdivision 11, or 256B.092; and

 

(7) the person's right to appeal the decision regarding the need for nursing facility level of care or the county's final decisions regarding public programs eligibility according to section 256.045, subdivision 3.

 

(i) Face-to-face assessment completed as part of eligibility determination for the alternative care, elderly waiver, community alternatives for disabled individuals, community alternative care, and traumatic brain injury waiver programs under sections 256B.0915, 256B.0917, and 256B.49 is valid to establish service eligibility for no more than 60 calendar days after the date of assessment.  The effective eligibility start date for these programs can never be prior to the date of assessment.  If an assessment was completed more than 60 days before the effective waiver or alternative care program eligibility start date, assessment and support plan information must be updated in a face-to-face visit and documented in the department's Medicaid Management Information System (MMIS).  The effective date of program eligibility in this case cannot be prior to the date the updated assessment is completed.


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Sec. 19.  Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 3b, is amended to read:

 

Subd. 3b.  Transition assistance.  (a) A long-term care consultation team shall provide assistance to persons residing in a nursing facility, hospital, regional treatment center, or intermediate care facility for persons with developmental disabilities who request or are referred for assistance.  Transition assistance must include assessment, community support plan development, referrals to long-term care options counseling under section 256B.975, subdivision 10, for community support plan implementation and to Minnesota health care programs, including home and community-based waiver services and consumer-directed options through the waivers, and referrals to programs that provide assistance with housing.  Transition assistance must also include information about the Centers for Independent Living and the Senior LinkAge Line, and about other organizations that can provide assistance with relocation efforts, and information about contacting these organizations to obtain their assistance and support.

 

(b) The county shall develop transition processes with institutional social workers and discharge planners to ensure that:

 

(1) persons admitted to facilities receive information about transition assistance that is available;

 

(2) the assessment is completed for persons within ten working days of the date of request or recommendation for assessment; and

 

(3) there is a plan for transition and follow-up for the individual's return to the community.  The plan must require notification of other local agencies when a person who may require assistance is screened by one county for admission to a facility located in another county.

 

(c) If a person who is eligible for a Minnesota health care program is admitted to a nursing facility, the nursing facility must include a consultation team member or the case manager in the discharge planning process.

 

Sec. 20.  Minnesota Statutes 2008, section 256B.0911, subdivision 4d, is amended to read:

 

Subd. 4d.  Preadmission screening of individuals under 65 years of age.  (a) It is the policy of the state of Minnesota to ensure that individuals with disabilities or chronic illness are served in the most integrated setting appropriate to their needs and have the necessary information to make informed choices about home and community-based service options.

 

(b) Individuals under 65 years of age who are admitted to a nursing facility from a hospital must be screened prior to admission as outlined in subdivisions 4a through 4c.

 

(c) Individuals under 65 years of age who are admitted to nursing facilities with only a telephone screening must receive a face-to-face assessment from the long-term care consultation team member of the county in which the facility is located or from the recipient's county case manager within 40 calendar days of admission.

 

(d) Individuals under 65 years of age who are admitted to a nursing facility without preadmission screening according to the exemption described in subdivision 4b, paragraph (a), clause (3), and who remain in the facility longer than 30 days must receive a face-to-face assessment within 40 days of admission.

 

(e) At the face-to-face assessment, the long-term care consultation team member or county case manager must perform the activities required under subdivision 3b.

 

(f) For individuals under 21 years of age, a screening interview which recommends nursing facility admission must be face-to-face and approved by the commissioner before the individual is admitted to the nursing facility.


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(g) In the event that an individual under 65 years of age is admitted to a nursing facility on an emergency basis, the county must be notified of the admission on the next working day, and a face-to-face assessment as described in paragraph (c) must be conducted within 40 calendar days of admission.

 

(h) At the face-to-face assessment, the long-term care consultation team member or the case manager must present information about home and community-based options, including consumer-directed options, so the individual can make informed choices.  If the individual chooses home and community-based services, the long-term care consultation team member or case manager must complete a written relocation plan within 20 working days of the visit.  The plan shall describe the services needed to move out of the facility and a time line for the move which is designed to ensure a smooth transition to the individual's home and community.

 

(i) An individual under 65 years of age residing in a nursing facility shall receive a face-to-face assessment at least every 12 months to review the person's service choices and available alternatives unless the individual indicates, in writing, that annual visits are not desired.  In this case, the individual must receive a face-to-face assessment at least once every 36 months for the same purposes.

 

(j) Notwithstanding the provisions of subdivision 6, the commissioner may pay county agencies directly for face-to-face assessments for individuals under 65 years of age who are being considered for placement or residing in a nursing facility.

 

Sec. 21.  Minnesota Statutes 2009 Supplement, section 256D.44, subdivision 5, is amended to read:

 

Subd. 5.  Special needs.  In addition to the state standards of assistance established in subdivisions 1 to 4, payments are allowed for the following special needs of recipients of Minnesota supplemental aid who are not residents of a nursing home, a regional treatment center, or a group residential housing facility.

 

(a) The county agency shall pay a monthly allowance for medically prescribed diets if the cost of those additional dietary needs cannot be met through some other maintenance benefit.  The need for special diets or dietary items must be prescribed by a licensed physician.  Costs for special diets shall be determined as percentages of the allotment for a one-person household under the thrifty food plan as defined by the United States Department of Agriculture.  The types of diets and the percentages of the thrifty food plan that are covered are as follows:

 

(1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;

 

(2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent of thrifty food plan;

 

(3) controlled protein diet, less than 40 grams and requires special products, 125 percent of thrifty food plan;

 

(4) low cholesterol diet, 25 percent of thrifty food plan;

 

(5) high residue diet, 20 percent of thrifty food plan;

 

(6) pregnancy and lactation diet, 35 percent of thrifty food plan;

 

(7) gluten-free diet, 25 percent of thrifty food plan;

 

(8) lactose-free diet, 25 percent of thrifty food plan;

 

(9) antidumping diet, 15 percent of thrifty food plan;

 

(10) hypoglycemic diet, 15 percent of thrifty food plan; or


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(11) ketogenic diet, 25 percent of thrifty food plan.

 

(b) Payment for nonrecurring special needs must be allowed for necessary home repairs or necessary repairs or replacement of household furniture and appliances using the payment standard of the AFDC program in effect on July 16, 1996, for these expenses, as long as other funding sources are not available.

 

(c) A fee for guardian or conservator service is allowed at a reasonable rate negotiated by the county or approved by the court.  This rate shall not exceed five percent of the assistance unit's gross monthly income up to a maximum of $100 per month.  If the guardian or conservator is a member of the county agency staff, no fee is allowed.

 

(d) The county agency shall continue to pay a monthly allowance of $68 for restaurant meals for a person who was receiving a restaurant meal allowance on June 1, 1990, and who eats two or more meals in a restaurant daily.  The allowance must continue until the person has not received Minnesota supplemental aid for one full calendar month or until the person's living arrangement changes and the person no longer meets the criteria for the restaurant meal allowance, whichever occurs first.

 

(e) A fee of ten percent of the recipient's gross income or $25, whichever is less, is allowed for representative payee services provided by an agency that meets the requirements under SSI regulations to charge a fee for representative payee services.  This special need is available to all recipients of Minnesota supplemental aid regardless of their living arrangement.

 

(f)(1) Notwithstanding the language in this subdivision, an amount equal to the maximum allotment authorized by the federal Food Stamp Program for a single individual which is in effect on the first day of July of each year will be added to the standards of assistance established in subdivisions 1 to 4 for adults under the age of 65 who qualify as shelter needy and are:  (i) relocating from an institution, or an adult mental health residential treatment program under section 256B.0622; (ii) eligible for the self-directed supports option as defined under section 256B.0657, subdivision 2; or (iii) home and community-based waiver recipients living in their own home or rented or leased apartment which is not owned, operated, or controlled by a provider of service not related by blood or marriage, unless allowed under paragraph (g).

 

(2) Notwithstanding subdivision 3, paragraph (c), an individual eligible for the shelter needy benefit under this paragraph is considered a household of one.  An eligible individual who receives this benefit prior to age 65 may continue to receive the benefit after the age of 65.

 

(3) "Shelter needy" means that the assistance unit incurs monthly shelter costs that exceed 40 percent of the assistance unit's gross income before the application of this special needs standard.  "Gross income" for the purposes of this section is the applicant's or recipient's income as defined in section 256D.35, subdivision 10, or the standard specified in subdivision 3, paragraph (a) or (b), whichever is greater.  A recipient of a federal or state housing subsidy, that limits shelter costs to a percentage of gross income, shall not be considered shelter needy for purposes of this paragraph.

 

(g) Notwithstanding this subdivision, to access housing and services as provided in paragraph (f), the recipient may choose housing that may or may not be owned, operated, or controlled by the recipient's service provider if the housing is located in a multifamily building of six or more units.  In a multifamily building of four or more units, the maximum number of units apartments that may be used by recipients of this program shall be 50 percent of the units in a building.  The department shall develop an exception process to the 50 percent maximum.  This paragraph expires on June 30, 2011 2012.


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Sec. 22.  Minnesota Statutes 2008, section 326B.43, subdivision 2, is amended to read:

 

Subd. 2.  Agreement with municipality.  The commissioner may enter into an agreement with a municipality, in which the municipality agrees to perform plan and specification reviews required to be performed by the commissioner under Minnesota Rules, part 4715.3130, if: 

 

(a) the municipality has adopted: 

 

(1) the plumbing code;

 

(2) an ordinance that requires plumbing plans and specifications to be submitted to, reviewed, and approved by the municipality, except as provided in paragraph (n);

 

(3) an ordinance that authorizes the municipality to perform inspections required by the plumbing code; and

 

(4) an ordinance that authorizes the municipality to enforce the plumbing code in its entirety, except as provided in paragraph (p);

 

(b) the municipality agrees to review plumbing plans and specifications for all construction for which the plumbing code requires the review of plumbing plans and specifications, except as provided in paragraph (n);

 

(c) the municipality agrees that, when it reviews plumbing plans and specifications under paragraph (b), the review will: 

 

(1) reflect the degree to which the plans and specifications affect the public health and conform to the provisions of the plumbing code;

 

(2) ensure that there is no physical connection between water supply systems that are safe for domestic use and those that are unsafe for domestic use; and

 

(3) ensure that there is no apparatus through which unsafe water may be discharged or drawn into a safe water supply system;

 

(d) the municipality agrees to perform all inspections required by the plumbing code in connection with projects for which the municipality reviews plumbing plans and specifications under paragraph (b);

 

(e) the commissioner determines that the individuals who will conduct the inspections and the plumbing plan and specification reviews for the municipality do not have any conflict of interest in conducting the inspections and the plan and specification reviews;

 

(f) individuals who will conduct the plumbing plan and specification reviews for the municipality are: 

 

(1) licensed master plumbers;

 

(2) licensed professional engineers; or

 

(3) individuals who are working under the supervision of a licensed professional engineer or licensed master plumber and who are licensed master or journeyman plumbers or hold a postsecondary degree in engineering;

 

(g) individuals who will conduct the plumbing plan and specification reviews for the municipality have passed a competency assessment required by the commissioner to assess the individual's competency at reviewing plumbing plans and specifications;


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(h) individuals who will conduct the plumbing inspections for the municipality are licensed master or journeyman plumbers, or inspectors meeting the competency requirements established in rules adopted under section 326B.135;

 

(i) the municipality agrees to enforce in its entirety the plumbing code on all projects, except as provided in paragraph (p);

 

(j) the municipality agrees to keep official records of all documents received, including plans, specifications, surveys, and plot plans, and of all plan reviews, permits and certificates issued, reports of inspections, and notices issued in connection with plumbing inspections and the review of plumbing plans and specifications;

 

(k) the municipality agrees to maintain the records described in paragraph (j) in the official records of the municipality for the period required for the retention of public records under section 138.17, and shall make these records readily available for review at the request of the commissioner;

 

(l) the municipality and the commissioner agree that if at any time during the agreement the municipality does not have in effect the plumbing code or any of ordinances described in paragraph (a), or if the commissioner determines that the municipality is not properly administering and enforcing the plumbing code or is otherwise not complying with the agreement: 

 

(1) the commissioner may, effective 14 days after the municipality's receipt of written notice, terminate the agreement;

 

(2) the municipality may challenge the termination in a contested case before the commissioner pursuant to the Administrative Procedure Act; and

 

(3) while any challenge is pending under clause (2), the commissioner shall perform plan and specification reviews within the municipality under Minnesota Rules, part 4715.3130;

 

(m) the municipality and the commissioner agree that the municipality may terminate the agreement with or without cause on 90 days' written notice to the commissioner;

 

(n) the municipality and the commissioner agree that the municipality shall forward to the state for review all plumbing plans and specifications for the following types of projects within the municipality: 

 

(1) hospitals, nursing homes, supervised living facilities licensed for eight or more individuals, and similar health-care-related facilities regulated by the Minnesota Department of Health;

 

(2) buildings owned by the federal or state government; and

 

(3) projects of a special nature for which department review is requested by either the municipality or the state;

 

(o) where the municipality forwards to the state for review plumbing plans and specifications, as provided in paragraph (n), the municipality shall not collect any fee for plan review, and the commissioner shall collect all applicable fees for plan review; and

 

(p) no municipality shall revoke, suspend, or place restrictions on any plumbing license issued by the state. 


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Sec. 23.  Minnesota Statutes 2008, section 626.557, subdivision 9a, is amended to read:

 

Subd. 9a.  Evaluation and referral of reports made to common entry point unit.  The common entry point must screen the reports of alleged or suspected maltreatment for immediate risk and make all necessary referrals as follows:

 

(1) if the common entry point determines that there is an immediate need for adult protective services, the common entry point agency shall immediately notify the appropriate county agency;

 

(2) if the report contains suspected criminal activity against a vulnerable adult, the common entry point shall immediately notify the appropriate law enforcement agency;

 

(3) if the report references alleged or suspected maltreatment and there is no immediate need for adult protective services, the common entry point shall notify refer all reports of alleged or suspected maltreatment to the appropriate lead agency as soon as possible, but in any event no longer than two working days; and

 

(4) if the report does not reference alleged or suspected maltreatment, the common entry point may determine whether the information will be referred; and

 

(5) (4) if the report contains information about a suspicious death, the common entry point shall immediately notify the appropriate law enforcement agencies, the local medical examiner, and the ombudsman established under section 245.92.  Law enforcement agencies shall coordinate with the local medical examiner and the ombudsman as provided by law.

 

Sec. 24.  Laws 2009, chapter 79, article 8, section 81, is amended to read:

 

Sec. 81.  ESTABLISHING A SINGLE SET OF STANDARDS. 

 

(a) The commissioner of human services shall consult with disability service providers, advocates, counties, and consumer families to develop a single set of standards, to be referred to as "quality outcome standards," governing services for people with disabilities receiving services under the home and community-based waiver services program to replace all or portions of existing laws and rules including, but not limited to, data practices, licensure of facilities and providers, background studies, reporting of maltreatment of minors, reporting of maltreatment of vulnerable adults, and the psychotropic medication checklist.  The standards must:

 

(1) enable optimum consumer choice;

 

(2) be consumer driven;

 

(3) link services to individual needs and life goals;

 

(4) be based on quality assurance and individual outcomes;

 

(5) utilize the people closest to the recipient, who may include family, friends, and health and service providers, in conjunction with the recipient's risk management plan to assist the recipient or the recipient's guardian in making decisions that meet the recipient's needs in a cost-effective manner and assure the recipient's health and safety;

 

(6) utilize person-centered planning; and

 

(7) maximize federal financial participation.


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(b) The commissioner may consult with existing stakeholder groups convened under the commissioner's authority, including the home and community-based expert services panel established by the commissioner in 2008, to meet all or some of the requirements of this section.

 

(c) The commissioner shall provide the reports and plans required by this section to the legislative committees and budget divisions with jurisdiction over health and human services policy and finance by January 15, 2012.

 

Sec. 25.  ELDERLY WAIVER CONVERSION. 

 

Notwithstanding Minnesota Statutes, section 256B.0915, subdivision 3b, a person age 65 or older with an MT home care rating on January 1, 2010, is eligible for the elderly waiver program and shall be considered a conversion for purposes of accessing monthly budget caps equal to no more than the person's monthly spending under the personal care assistance program on January 1, 2010.

 

Sec. 26.  DIRECTION TO COMMISSIONER; CONSULTATION WITH STAKEHOLDERS. 

 

The commissioner shall consult with stakeholders experienced in using and providing services through the consumer-directed community supports option during the identification of data to be used in future development of an individualized budget methodology for the home and community-based waivers for individuals with disabilities under the new comprehensive assessment.

 

Sec. 27.  CASE MANAGEMENT RECOMMENDATIONS. 

 

By February 1, 2011, the commissioner of human services shall provide specific recommendations and language for proposed legislation to:

 

(1) define the administrative and the service functions of case management for persons with disabilities and make changes to improve the funding for administrative functions;

 

(2) standardize and simplify processes, standards, and timelines for case management with the Department of Human Services Disability Services Division, including eligibility determinations, resource allocation, management of dollars, provision for assignment of one case manager at a time per person, waiting lists, quality assurance, host county concurrence requirements, county of financial responsibility provisions, and waiver compliance; and

 

(3) increase opportunities for consumer choice of case management functions involving service coordination.

 

In developing these recommendations, the commissioner of human services shall consider the recommendations of the 2007 Redesigning Case Management Services for Persons with Disabilities Report and consult with existing stakeholder groups, which include representatives of counties, disability and senior advocacy groups, service providers, and representatives of agencies that provide contacted case management.

 

This section is effective the day following final enactment.

 

ARTICLE 2

 

PERSONAL CARE ASSISTANT SERVICES

 

Section 1.  Minnesota Statutes 2009 Supplement, section 256B.0653, subdivision 3, is amended to read:

 

Subd. 3.  Home health aide visits.  (a) Home health aide visits must be provided by a certified home health aide using a written plan of care that is updated in compliance with Medicare regulations.  A home health aide shall provide hands-on personal care, perform simple procedures as an extension of therapy or nursing services, and assist


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in instrumental activities of daily living as defined in section 256B.0659, including assuring that the person gets to medical appointments if identified in the written plan of care.  Home health aide visits must be provided in the recipient's home.

 

(b) All home health aide visits must have authorization under section 256B.0652.  The commissioner shall limit home health aide visits to no more than one visit per day per recipient.

 

(c) Home health aides must be supervised by a registered nurse or an appropriate therapist when providing services that are an extension of therapy.

 

Sec. 2.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) For the purposes of this section, the terms defined in paragraphs (b) to (p) (r) have the meanings given unless otherwise provided in text.

 

(b) "Activities of daily living" means grooming, dressing, bathing, transferring, mobility, positioning, eating, and toileting.

 

(c) "Behavior," effective January 1, 2010, means a category to determine the home care rating and is based on the criteria found in this section.  "Level I behavior" means physical aggression towards self, others, or destruction of property that requires the immediate response of another person.

 

(d) "Complex health-related needs," effective January 1, 2010, means a category to determine the home care rating and is based on the criteria found in this section.

 

(e) "Critical activities of daily living," effective January 1, 2010, means transferring, mobility, eating, and toileting.

 

(f) "Dependency in activities of daily living" means a person requires assistance to begin and complete one or more of the activities of daily living.

 

(g) "Extended personal care assistance service" means personal care assistance services included in a service plan under one of the home and community-based services waivers authorized under sections 256B.49, 256B.0915, and 256B.092, subdivision 5, which exceed the amount, duration, and frequency of the state plan personal care assistance services for participants who:

 

(1) need assistance provided periodically during a week, but less than daily will not be able to remain in their home without the assistance, and other replacement services are more expensive or are not available when personal care assistance services are to be terminated; or

 

(2) need additional personal care assistance services beyond the amount authorized by the state plan personal care assistance assessment in order to ensure that their safety, health, and welfare are provided for in their homes.

 

(h) "Health-related procedures and tasks" means procedures and tasks that can be delegated or assigned by a licensed health care professional under state law to be performed by a personal care assistant.

 

(h) (i) "Instrumental activities of daily living" means activities to include meal planning and preparation; basic assistance with paying bills; shopping for food, clothing, and other essential items; performing household tasks integral to the personal care assistance services; communication by telephone and other media; and traveling, including to medical appointments and to participate in the community.


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(i) (j) "Managing employee" has the same definition as Code of Federal Regulations, title 42, section 455.

 

(j) (k) "Qualified professional" means a professional providing supervision of personal care assistance services and staff as defined in section 256B.0625, subdivision 19c.

 

(k) (l) "Personal care assistance provider agency" means a medical assistance enrolled provider that provides or assists with providing personal care assistance services and includes a personal care assistance provider organization, personal care assistance choice agency, class A licensed nursing agency, and Medicare-certified home health agency.

 

(l) (m) "Personal care assistant" or "PCA" means an individual employed by a personal care assistance agency who provides personal care assistance services.

 

(m) (n) "Personal care assistance care plan" means a written description of personal care assistance services developed by the personal care assistance provider according to the service plan.

 

(n) (o) "Responsible party" means an individual who is capable of providing the support necessary to assist the recipient to live in the community.

 

(o) (p) "Self-administered medication" means medication taken orally, by injection or insertion, or applied topically without the need for assistance.

 

(p) (q) "Service plan" means a written summary of the assessment and description of the services needed by the recipient.

 

(r) "Wages and benefits" means wages and salaries, the employer's share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers' compensation, mileage reimbursement, health and dental insurance, life insurance, disability insurance, long-term care insurance, uniform allowance, and contributions to employee retirement accounts.

 

Sec. 3.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 3, is amended to read:

 

Subd. 3.  Noncovered personal care assistance services.  (a) Personal care assistance services are not eligible for medical assistance payment under this section when provided:

 

(1) by the recipient's spouse, parent of a recipient under the age of 18, paid legal guardian, licensed foster provider, except as allowed under section 256B.0651, subdivision 10, or responsible party;

 

(2) in lieu of other staffing options in a residential or child care setting;

 

(3) solely as a child care or babysitting service; or

 

(4) without authorization by the commissioner or the commissioner's designee.

 

(b) The following personal care services are not eligible for medical assistance payment under this section when provided in residential settings:

 

(1) effective January 1, 2010, when the provider of home care services who is not related by blood, marriage, or adoption owns or otherwise controls the living arrangement, including licensed or unlicensed services; or


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(2) when personal care assistance services are the responsibility of a residential or program license holder under the terms of a service agreement and administrative rules.

 

(c) Other specific tasks not covered under paragraph (a) or (b) that are not eligible for medical assistance reimbursement for personal care assistance services under this section include:

 

(1) sterile procedures;

 

(2) injections of fluids and medications into veins, muscles, or skin;

 

(3) home maintenance or chore services;

 

(4) homemaker services not an integral part of assessed personal care assistance services needed by a recipient;

 

(5) application of restraints or implementation of procedures under section 245.825;

 

(6) instrumental activities of daily living for children under the age of 18, except when immediate attention is needed for health or hygiene reasons integral to the personal care services and the need is listed in the service plan by the assessor; and

 

(7) assessments for personal care assistance services by personal care assistance provider agencies or by independently enrolled registered nurses.

 

Sec. 4.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 4, is amended to read:

 

Subd. 4.  Assessment for personal care assistance services; limitations.  (a) An assessment as defined in subdivision 3a must be completed for personal care assistance services.

 

(b) The following limitations apply to the assessment:

 

(1) a person must be assessed as dependent in an activity of daily living based on the person's daily need or need on the days during the week the activity is completed, on a daily basis, for:

 

(i) cuing and constant supervision to complete the task; or

 

(ii) hands-on assistance to complete the task; and

 

(2) a child may not be found to be dependent in an activity of daily living if because of the child's age an adult would either perform the activity for the child or assist the child with the activity.  Assistance needed is the assistance appropriate for a typical child of the same age.

 

(c) Assessment for complex health-related needs must meet the criteria in this paragraph.  During the assessment process, a recipient qualifies as having complex health-related needs if the recipient has one or more of the interventions that are ordered by a physician, specified in a personal care assistance care plan, and found in the following:

 

(1) tube feedings requiring:

 

(i) a gastro/jejunostomy gastrojejunostomy tube; or

 

(ii) continuous tube feeding lasting longer than 12 hours per day;


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(2) wounds described as:

 

(i) stage III or stage IV;

 

(ii) multiple wounds;

 

(iii) requiring sterile or clean dressing changes or a wound vac; or

 

(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require specialized care;

 

(3) parenteral therapy described as:

 

(i) IV therapy more than two times per week lasting longer than four hours for each treatment; or

 

(ii) total parenteral nutrition (TPN) daily;

 

(4) respiratory interventions including:

 

(i) oxygen required more than eight hours per day;

 

(ii) respiratory vest more than one time per day;

 

(iii) bronchial drainage treatments more than two times per day;

 

(iv) sterile or clean suctioning more than six times per day;

 

(v) dependence on another to apply respiratory ventilation augmentation devices such as BiPAP and CPAP; and

 

(vi) ventilator dependence under section 256B.0652;

 

(5) insertion and maintenance of catheter including:

 

(i) sterile catheter changes more than one time per month;

 

(ii) clean self-catheterization more than six times per day; or

 

(iii) bladder irrigations;

 

(6) bowel program more than two times per week requiring more than 30 minutes to perform each time;

 

(7) neurological intervention including:

 

(i) seizures more than two times per week and requiring significant physical assistance to maintain safety; or

 

(ii) swallowing disorders diagnosed by a physician and requiring specialized assistance from another on a daily basis; and

 

(8) other congenital or acquired diseases creating a need for significantly increased direct hands-on assistance and interventions in six to eight activities of daily living.


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(d) An assessment of behaviors must meet the criteria in this paragraph.  A recipient qualifies as having a need for assistance due to behaviors if the recipient's behavior requires assistance at least four times per week and shows one or more of the following behaviors:

 

(1) physical aggression towards self or others, or destruction of property that requires the immediate response of another person;

 

(2) increased vulnerability due to cognitive deficits or socially inappropriate behavior; or

 

(3) verbally aggressive and resistive to care.

 

Sec. 5.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11, is amended to read:

 

Subd. 11.  Personal care assistant; requirements.  (a) A personal care assistant must meet the following requirements:

 

(1) be at least 18 years of age with the exception of persons who are 16 or 17 years of age with these additional requirements:

 

(i) supervision by a qualified professional every 60 days; and

 

(ii) employment by only one personal care assistance provider agency responsible for compliance with current labor laws;

 

(2) be employed by a personal care assistance provider agency;

 

(3) enroll with the department as a personal care assistant after clearing a background study.  Before a personal care assistant provides services, the personal care assistance provider agency must initiate a background study on the personal care assistant under chapter 245C, and the personal care assistance provider agency must have received a notice from the commissioner that the personal care assistant is:

 

(i) not disqualified under section 245C.14; or

 

(ii) is disqualified, but the personal care assistant has received a set aside of the disqualification under section 245C.22;

 

(4) be able to effectively communicate with the recipient and personal care assistance provider agency;

 

(5) be able to provide covered personal care assistance services according to the recipient's personal care assistance care plan, respond appropriately to recipient needs, and report changes in the recipient's condition to the supervising qualified professional or physician;

 

(6) not be a consumer of personal care assistance services;

 

(7) maintain daily written records including, but not limited to, time sheets under subdivision 12;

 

(8) effective January 1, 2010, complete standardized training as determined by the commissioner before completing enrollment.  The training must be available in languages other than English and to those who need accommodations due to disabilities.  Personal care assistant training must include successful completion of the following training components:  basic first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of personal care assistants including information about assistance with lifting and


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transfers for recipients, emergency preparedness, orientation to positive behavioral practices, fraud issues, and completion of time sheets.  Upon completion of the training components, the personal care assistant must demonstrate the competency to provide assistance to recipients;

 

(9) complete training and orientation on the needs of the recipient within the first seven days after the services begin; and

 

(10) be limited to providing and being paid for up to 310 hours per month of personal care assistance services regardless of the number of recipients being served or the number of personal care assistance provider agencies enrolled with.  The number of hours worked per day shall not be disallowed by the department unless in violation of the law.

 

(b) A legal guardian may be a personal care assistant if the guardian is not being paid for the guardian services and meets the criteria for personal care assistants in paragraph (a).

 

(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant include parents and stepparents of minors, spouses, paid legal guardians, family foster care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or staff of a residential setting.

 

Sec. 6.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 13, is amended to read:

 

Subd. 13.  Qualified professional; qualifications.  (a) The qualified professional must be employed by a personal care assistance provider agency and meet the definition under section 256B.0625, subdivision 19c.  Before a qualified professional provides services, the personal care assistance provider agency must initiate a background study on the qualified professional under chapter 245C, and the personal care assistance provider agency must have received a notice from the commissioner that the qualified professional:

 

(1) is not disqualified under section 245C.14; or

 

(2) is disqualified, but the qualified professional has received a set aside of the disqualification under section 245C.22.

 

(b) The qualified professional shall perform the duties of training, supervision, and evaluation of the personal care assistance staff and evaluation of the effectiveness of personal care assistance services.  The qualified professional shall:

 

(1) develop and monitor with the recipient a personal care assistance care plan based on the service plan and individualized needs of the recipient;

 

(2) develop and monitor with the recipient a monthly plan for the use of personal care assistance services;

 

(3) review documentation of personal care assistance services provided;

 

(4) provide training and ensure competency for the personal care assistant in the individual needs of the recipient; and

 

(5) document all training, communication, evaluations, and needed actions to improve performance of the personal care assistants.

 

(c) Effective January July 1, 2010, the qualified professional shall complete the provider training with basic information about the personal care assistance program approved by the commissioner within six months of the date hired by a personal care assistance provider agency.  Qualified professionals who have completed the required


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trainings as an employee with a personal care assistance provider agency do not need to repeat the required trainings if they are hired by another agency, if they have completed the training within the last three years.  The required training shall be available in languages other than English and to those who need accommodations due to disabilities, online, or by electronic remote connection, and provide for competency testing to demonstrate an understanding of the content without attending in-person training.  A qualified professional is allowed to be employed and is not subject to the training requirement until the training is offered online or through remote electronic connection.  A qualified professional employed by a personal care assistance provider agency certified for participation in Medicare as a home health agency is exempt from the training required in this subdivision.  The commissioner shall ensure there is a mechanism in place to verify the identity of persons completing the competency testing electronically.

 

Sec. 7.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 14, is amended to read:

 

Subd. 14.  Qualified professional; duties.  (a) Effective January 1, 2010, all personal care assistants must be supervised by a qualified professional.

 

(b) Through direct training, observation, return demonstrations, and consultation with the staff and the recipient, the qualified professional must ensure and document that the personal care assistant is:

 

(1) capable of providing the required personal care assistance services;

 

(2) knowledgeable about the plan of personal care assistance services before services are performed; and

 

(3) able to identify conditions that should be immediately brought to the attention of the qualified professional.

 

(c) The qualified professional shall evaluate the personal care assistant within the first 14 days of starting to provide regularly scheduled services for a recipient except for the personal care assistance choice option under subdivision 19, paragraph (a), clause (4).  For the initial evaluation, the qualified professional shall evaluate the personal care assistance services for a recipient through direct observation of a personal care assistant's work.  Subsequent visits to evaluate the personal care assistance services provided to a recipient do not require direct observation of each personal care assistant's work and shall occur:

 

(1) at least every 90 days thereafter for the first year of a recipient's services; and

 

(2) every 120 days after the first year of a recipient's service or whenever needed for response to a recipient's request for increased supervision of the personal care assistance staff; and

 

(3) after the first 180 days of a recipient's service, supervisory visits may alternate between unscheduled phone or Internet technology and in-person visits, unless the in-person visits are needed according to the care plan.

 

(d) Communication with the recipient is a part of the evaluation process of the personal care assistance staff.

 

(e) At each supervisory visit, the qualified professional shall evaluate personal care assistance services including the following information:

 

(1) satisfaction level of the recipient with personal care assistance services;

 

(2) review of the month-to-month plan for use of personal care assistance services;

 

(3) review of documentation of personal care assistance services provided;


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(4) whether the personal care assistance services are meeting the goals of the service as stated in the personal care assistance care plan and service plan;

 

(5) a written record of the results of the evaluation and actions taken to correct any deficiencies in the work of a personal care assistant; and

 

(6) revision of the personal care assistance care plan as necessary in consultation with the recipient or responsible party, to meet the needs of the recipient.

 

(f) The qualified professional shall complete the required documentation in the agency recipient and employee files and the recipient's home, including the following documentation:

 

(1) the personal care assistance care plan based on the service plan and individualized needs of the recipient;

 

(2) a month-to-month plan for use of personal care assistance services;

 

(3) changes in need of the recipient requiring a change to the level of service and the personal care assistance care plan;

 

(4) evaluation results of supervision visits and identified issues with personal care assistance staff with actions taken;

 

(5) all communication with the recipient and personal care assistance staff; and

 

(6) hands-on training or individualized training for the care of the recipient.

 

(g) The documentation in paragraph (f) must be done on agency forms.

 

(h) The services that are not eligible for payment as qualified professional services include:

 

(1) direct professional nursing tasks that could be assessed and authorized as skilled nursing tasks;

 

(2) supervision of personal care assistance completed by telephone;

 

(3) agency administrative activities;

 

(4) training other than the individualized training required to provide care for a recipient; and

 

(5) any other activity that is not described in this section.

 

Sec. 8.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 18, is amended to read:

 

Subd. 18.  Personal care assistance choice option; generally.  (a) The commissioner may allow a recipient of personal care assistance services to use a fiscal intermediary to assist the recipient in paying and accounting for medically necessary covered personal care assistance services.  Unless otherwise provided in this section, all other statutory and regulatory provisions relating to personal care assistance services apply to a recipient using the personal care assistance choice option.

 

(b) Personal care assistance choice is an option of the personal care assistance program that allows the recipient who receives personal care assistance services to be responsible for the hiring, training, scheduling, and firing of personal care assistants according to the terms of the written agreement with the personal care assistance choice


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agency required under subdivision 20, paragraph (a).  This program offers greater control and choice for the recipient in who provides the personal care assistance service and when the service is scheduled.  The recipient or the recipient's responsible party must choose a personal care assistance choice provider agency as a fiscal intermediary.  This personal care assistance choice provider agency manages payroll, invoices the state, is responsible for all payroll-related taxes and insurance, and is responsible for providing the consumer training and support in managing the recipient's personal care assistance services.

 

Sec. 9.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 19, is amended to read:

 

Subd. 19.  Personal care assistance choice option; qualifications; duties.  (a) Under personal care assistance choice, the recipient or responsible party shall:

 

(1) recruit, hire, schedule, and terminate personal care assistants and a qualified professional according to the terms of the written agreement required under subdivision 20, paragraph (a);

 

(2) develop a personal care assistance care plan based on the assessed needs and addressing the health and safety of the recipient with the assistance of a qualified professional as needed;

 

(3) orient and train the personal care assistant with assistance as needed from the qualified professional;

 

(4) effective January 1, 2010, supervise and evaluate the personal care assistant with the qualified professional, who is required to visit the recipient at least every 180 days;

 

(5) monitor and verify in writing and report to the personal care assistance choice agency the number of hours worked by the personal care assistant and the qualified professional;

 

(6) engage in an annual face-to-face reassessment to determine continuing eligibility and service authorization; and

 

(7) use the same personal care assistance choice provider agency if shared personal assistance care is being used.

 

(b) The personal care assistance choice provider agency shall:

 

(1) meet all personal care assistance provider agency standards;

 

(2) enter into a written agreement with the recipient, responsible party, and personal care assistants;

 

(3) not be related as a parent, child, sibling, or spouse to the recipient, qualified professional, or the personal care assistant; and

 

(4) ensure arm's-length transactions without undue influence or coercion with the recipient and personal care assistant.

 

(c) The duties of the personal care assistance choice provider agency are to:

 

(1) be the employer of the personal care assistant and the qualified professional for employment law and related regulations including, but not limited to, purchasing and maintaining workers' compensation, unemployment insurance, surety and fidelity bonds, and liability insurance, and submit any or all necessary documentation including, but not limited to, workers' compensation and unemployment insurance;

 

(2) bill the medical assistance program for personal care assistance services and qualified professional services;


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(3) request and complete background studies that comply with the requirements for personal care assistants and qualified professionals;

 

(4) pay the personal care assistant and qualified professional based on actual hours of services provided;

 

(5) withhold and pay all applicable federal and state taxes;

 

(6) verify and keep records of hours worked by the personal care assistant and qualified professional;

 

(7) make the arrangements and pay taxes and other benefits, if any, and comply with any legal requirements for a Minnesota employer;

 

(8) enroll in the medical assistance program as a personal care assistance choice agency; and

 

(9) enter into a written agreement as specified in subdivision 20 before services are provided.

 

Sec. 10.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 20, is amended to read:

 

Subd. 20.  Personal care assistance choice option; administration.  (a) Before services commence under the personal care assistance choice option, and annually thereafter, the personal care assistance choice provider agency, recipient, or responsible party, each personal care assistant, and the qualified professional and the recipient or responsible party shall enter into a written agreement.  The annual agreement must be provided to the recipient or responsible party, each personal care assistant, and the qualified professional when completed, and include at a minimum:

 

(1) duties of the recipient, qualified professional, personal care assistant, and personal care assistance choice provider agency;

 

(2) salary and benefits for the personal care assistant and the qualified professional;

 

(3) administrative fee of the personal care assistance choice provider agency and services paid for with that fee, including background study fees;

 

(4) grievance procedures to respond to complaints;

 

(5) procedures for hiring and terminating the personal care assistant; and

 

(6) documentation requirements including, but not limited to, time sheets, activity records, and the personal care assistance care plan.

 

(b) Effective January 1, 2010, except for the administrative fee of the personal care assistance choice provider agency as reported on the written agreement, the remainder of the rates paid to the personal care assistance choice provider agency must be used to pay for the salary and benefits for the personal care assistant or the qualified professional.  The provider agency must use a minimum of 72.5 percent of the revenue generated by the medical assistance rate for personal care assistance services for employee personal care assistant wages and benefits.

 

(c) The commissioner shall deny, revoke, or suspend the authorization to use the personal care assistance choice option if:

 

(1) it has been determined by the qualified professional or public health nurse that the use of this option jeopardizes the recipient's health and safety;


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(2) the parties have failed to comply with the written agreement specified in this subdivision;

 

(3) the use of the option has led to abusive or fraudulent billing for personal care assistance services; or

 

(4) the department terminates the personal care assistance choice option.

 

(d) The recipient or responsible party may appeal the commissioner's decision in paragraph (c) according to section 256.045.  The denial, revocation, or suspension to use the personal care assistance choice option must not affect the recipient's authorized level of personal care assistance services.

 

Sec. 11.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 21, is amended to read:

 

Subd. 21.  Requirements for initial enrollment of personal care assistance provider agencies.  (a) All personal care assistance provider agencies must provide, at the time of enrollment as a personal care assistance provider agency in a format determined by the commissioner, information and documentation that includes, but is not limited to, the following:

 

(1) the personal care assistance provider agency's current contact information including address, telephone number, and e-mail address;

 

(2) proof of surety bond coverage in the amount of $50,000 or ten percent of the provider's payments from Medicaid in the previous year, whichever is less;

 

(3) proof of fidelity bond coverage in the amount of $20,000;

 

(4) proof of workers' compensation insurance coverage;

 

(5) a description of the personal care assistance provider agency's organization identifying the names of all owners, managing employees, staff, board of directors, and the affiliations of the directors, owners, or staff to other service providers;

 

(6) a copy of the personal care assistance provider agency's written policies and procedures including:  hiring of employees; training requirements; service delivery; and employee and consumer safety including process for notification and resolution of consumer grievances, identification and prevention of communicable diseases, and employee misconduct;

 

(7) copies of all other forms the personal care assistance provider agency uses in the course of daily business including, but not limited to:

 

(i) a copy of the personal care assistance provider agency's time sheet if the time sheet varies from the standard time sheet for personal care assistance services approved by the commissioner, and a letter requesting approval of the personal care assistance provider agency's nonstandard time sheet;

 

(ii) the personal care assistance provider agency's template for the personal care assistance care plan; and

 

(iii) the personal care assistance provider agency's template for the written agreement in subdivision 20 for recipients using the personal care assistance choice option, if applicable;

 

(8) a list of all trainings and classes that the personal care assistance provider agency requires of its staff providing personal care assistance services;


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(9) documentation that the personal care assistance provider agency and staff have successfully completed all the training required by this section;

 

(10) documentation of the agency's marketing practices;

 

(11) disclosure of ownership, leasing, or management of all residential properties that is used or could be used for providing home care services; and

 

(12) documentation that the agency will use the following percentages of revenue generated from the medical assistance rate paid for personal care assistance services for employee personal care assistant wages and benefits:  72.5 percent of revenue in the personal care assistance choice option and 72.5 percent of revenue from other personal care assistance providers; and

 

(13) effective the day following final enactment, documentation that the agency does not burden recipients' free exercise of their right to choose service providers by requiring personal care assistants to sign an agreement not to work with any particular personal care assistance recipient or for another personal care assistance provider agency after leaving the agency and that the agency is not taking action on any such agreements or requirements regardless of the date signed.

 

(b) Personal care assistance provider agencies shall provide the information specified in paragraph (a) to the commissioner at the time the personal care assistance provider agency enrolls as a vendor or upon request from the commissioner.  The commissioner shall collect the information specified in paragraph (a) from all personal care assistance providers beginning July 1, 2009.

 

(c) All personal care assistance provider agencies shall require all employees in management and supervisory positions and owners of the agency who are active in the day-to-day management and operations of the agency to complete mandatory training as determined by the commissioner before enrollment of the agency as a provider.  Personal care assistance provider agencies are required to send all owners, qualified professionals employed by the agency, and all other managing employees to the initial and subsequent trainings.  Employees in management and supervisory positions and owners who are active in the day-to-day operations of an agency who have completed the required training as an employee with a personal care assistance provider agency do not need to repeat the required training if they are hired by another agency, if they have completed the training within the past three years.  By September 1, 2010, the required training must be available in languages other than English and to those who need accommodations due to disabilities, online, or by electronic remote connection, and provide for competency testing.  Personal care assistance provider agency billing staff shall complete training about personal care assistance program financial management.  This training is effective July 1, 2009.  Any personal care assistance provider agency enrolled before that date shall, if it has not already, complete the provider training within 18 months of July 1, 2009.  Any new owners, new qualified professionals, and new managing or employees in management and supervisory positions involved in the day-to-day operations are required to complete mandatory training as a requisite of hiring working for the agency.  Personal care assistance provider agencies certified for participation in Medicare as home health agencies are exempt from the training required in this subdivision.

 

Sec. 12.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 24, is amended to read:

 

Subd. 24.  Personal care assistance provider agency; general duties.  A personal care assistance provider agency shall:

 

(1) enroll as a Medicaid provider meeting all provider standards, including completion of the required provider training;

 

(2) comply with general medical assistance coverage requirements;


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(3) demonstrate compliance with law and policies of the personal care assistance program to be determined by the commissioner;

 

(4) comply with background study requirements;

 

(5) verify and keep records of hours worked by the personal care assistant and qualified professional;

 

(6) market agency services only through printed information in brochures and on Web sites and not engage in any agency-initiated direct contact or marketing in person, by phone, or other electronic means to potential recipients, guardians, or family members;

 

(7) pay the personal care assistant and qualified professional based on actual hours of services provided;

 

(8) withhold and pay all applicable federal and state taxes;

 

(9) effective January 1, 2010, document that the agency uses a minimum of 72.5 percent of the revenue generated by the medical assistance rate for personal care assistance services for employee personal care assistant wages and benefits;

 

(10) make the arrangements and pay unemployment insurance, taxes, workers' compensation, liability insurance, and other benefits, if any;

 

(11) enter into a written agreement under subdivision 20 before services are provided;

 

(12) report suspected neglect and abuse to the common entry point according to section 256B.0651;

 

(13) provide the recipient with a copy of the home care bill of rights at start of service; and

 

(14) request reassessments at least 60 days prior to the end of the current authorization for personal care assistance services, on forms provided by the commissioner.

 

Sec. 13.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 27, is amended to read:

 

Subd. 27.  Personal care assistance provider agency; ventilator training.  (a) The personal care assistance provider agency is required to provide training for the personal care assistant responsible for working with a recipient who is ventilator dependent.  All training must be administered by a respiratory therapist, nurse, or physician.  Qualified professional supervision by a nurse must be completed and documented on file in the personal care assistant's employment record and the recipient's health record.  If offering personal care services to a ventilator-dependent recipient, the personal care assistance provider agency shall demonstrate and document the ability to:

 

(1) train the personal care assistant;

 

(2) supervise the personal care assistant in ventilator operation and maintenance the care of a ventilator-dependent recipient; and

 

(3) supervise the recipient and responsible party in ventilator operation and maintenance the care of a ventilator-dependent recipient; and

 

(4) provide documentation of the training and supervision in clauses (1) to (3) upon request.


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(b) A personal care assistant shall not undertake any clinical services, patient assessment, patient evaluation, or clinical education regarding the ventilator or the patient on the ventilator.  These services may only be provided by health care professionals licensed or registered in this state.

 

(c) A personal care assistant may only perform tasks associated with ventilator maintenance that are approved by the Board of Medical Practice in consultation with the Respiratory Care Practitioner Advisory Council and the Department of Human Services.

 

Sec. 14.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 30, is amended to read:

 

Subd. 30.  Notice of service changes to recipients.  The commissioner must provide:

 

(1) by October 31, 2009, information to recipients likely to be affected that (i) describes the changes to the personal care assistance program that may result in the loss of access to personal care assistance services, and (ii) includes resources to obtain further information; and

 

(2) notice of changes in medical assistance home care services to each affected recipient at least 30 days before the effective date of the change.

 

The notice shall include how to get further information on the changes, how to get help to obtain other services, a list of community resources, and appeal rights.  Notwithstanding section 256.045, a recipient may request continued services pending appeal within the time period allowed to request an appeal; and

 

(3) a service agreement authorizing personal care assistance hours of service at the previously authorized level, throughout the appeal process period, when a recipient requests services pending an appeal.

 

Sec. 15.  Minnesota Statutes 2008, section 256B.092, subdivision 4d, is amended to read:

 

Subd. 4d.  Medicaid reimbursement; licensed provider; related individuals.  The commissioner shall seek a federal amendment to the home and community-based services waiver for individuals with developmental disabilities, to allow Medicaid reimbursement for the provision of supported living services to a related individual is allowed when the following conditions have been met: specified in section 245A.03, subdivision 9, are met. 

 

(1) the individual is 18 years of age or older;

 

(2) the provider is certified initially and annually thereafter, by the county, as meeting the provider standards established in chapter 245B and the federal waiver plan;

 

(3) the provider has been certified by the county as meeting the adult foster care provider standards established in Minnesota Rules, parts 9555.5105 to 9555.6265;

 

(4) the provider is not the legal guardian or conservator of the related individual; and

 

(5) the individual's service plan meets the standards of this section and specifies any special conditions necessary to prevent a conflict of interest for the provider.

 

Sec. 16.  REPEALER. 

 

Minnesota Statutes 2008, section 256B.0919, subdivision 4, is repealed."


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Delete the title and insert:

 

"A bill for an act relating to human services; amending continuing care policy and technical provisions; modifying the nursing facility level of care criteria; modifying nursing facilities layaway status; permitting certain services by related individuals; requiring home care services providers to provide recipients with copies of the home care bill of rights; allowing personal care assistants to enroll with a different personal care assistance provider agency; allowing lead agencies to contract for assessments and reassessments; providing an elderly waiver conversion under the personal care assistance program; requiring the commissioner of human services to consult with stakeholders; requiring the commissioner of human services provide recommendations to improve case management services; clarifying personal care assistance provisions; amending Minnesota Statutes 2008, sections 144A.071, subdivision 4b; 144A.161, subdivision 1a; 245A.03, by adding a subdivision; 256B.0911, subdivision 4d; 256B.092, subdivision 4d; 326B.43, subdivision 2; 626.557, subdivision 9a; Minnesota Statutes 2009 Supplement, sections 144.0724, subdivision 11; 245A.03, subdivision 7; 245A.11, subdivision 7b; 256B.0625, subdivision 19c; 256B.0651, by adding a subdivision; 256B.0652, subdivision 6; 256B.0653, subdivision 3; 256B.0659, subdivisions 1, 3, 4, 10, 11, 13, 14, 18, 19, 20, 21, 24, 27, 30, by adding a subdivision; 256B.0911, subdivisions 1a, 2b, 3a, 3b; 256D.44, subdivision 5; Laws 2009, chapter 79, article 8, section 81; repealing Minnesota Statutes 2008, section 256B.0919, subdivision 4."

 

 

We request the adoption of this report and repassage of the bill.

 

Senate Conferees:  Tony Lourey, John Marty and Dennis Frederickson.

 

House Conferees:  Larry Hosch, Paul Thissen and Jim Abeler.

 

 

      Hosch moved that the report of the Conference Committee on S. F. No. 2933 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

S. F. No. 2933, A bill for an act relating to human services; making changes to continuing care policy and technical provisions; amending Minnesota Statutes 2008, sections 245A.03, by adding a subdivision; 626.557, subdivision 9a; Minnesota Statutes 2009 Supplement, sections 144.0724, subdivision 11; 256B.0625, subdivision 19c; 256B.0651, by adding a subdivision; 256B.0652, subdivision 6; 256B.0659, subdivisions 4, 10, 11, 13, 21, 30, by adding a subdivision; 256B.0911, subdivision 2b.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 128 yeas and 5 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Eastlund

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hoppe

Hornstein

Hortman

Hosch


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Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Buesgens

Drazkowski

Emmer

Hackbarth

Holberg


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

      There being no objection, the order of business reverted to Reports of Standing Committees and Divisions.

 

 

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

Carlson from the Committee on Finance to which was referred:

 

H. F. No. 2866, A bill for an act relating to state government; modifying authority of the executive branch to reduce unexpended allotments; amending Minnesota Statutes 2008, section 16A.152, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 16A.

 

Reported the same back with the following amendments:

 

Page 1, lines 23 and 24, delete the new language

 

Page 2, delete lines 1 and 2

 

Page 2, delete section 3

 

Renumber the sections in sequence and correct the internal references

 

Amend the title numbers accordingly

 

 

With the recommendation that when so amended the bill pass.

 

      The report was adopted.


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Carlson from the Committee on Finance to which was referred:

 

S. F. No. 3134, A bill for an act relating to government operations; describing how to fold the state flag; defining certain powers of the Council on Black Minnesotans; requiring fiscal notes to include information about job creation; limiting requirements for approval by individual legislators in the disposal process for certain state-owned buildings; increasing threshold requirements for deposit of agency receipts; imposing requirements on agencies for contracts over a certain amount; requiring state chief information officer to develop standards for enhanced public access to state electronic records; clarifying use of fees in the combined charities campaign; transferring membership in the Workers' Compensation Reinsurance Association from the commissioner of management and budget to the commissioner of administration; eliminating and modifying fees for certain filings with the secretary of state; authorizing grants to counties for voting equipment and vote-counting equipment; establishing the Commission on Service Innovation; allowing contiguous counties to establish a home rule charter commission; requiring reports; appropriating money; amending Minnesota Statutes 2008, sections 1.141, by adding subdivisions; 3.9225, subdivision 5; 3.98, subdivision 2; 16A.275; 16B.24, subdivision 3; 16E.04, subdivision 2; 16E.05, by adding a subdivision; 43A.50, subdivision 2; 79.34, subdivision 1; 318.02, subdivision 1; 557.01; proposing coding for new law in Minnesota Statutes, chapters 3; 16C; proposing coding for new law as Minnesota Statutes, chapter 372A; repealing Laws 2005, chapter 162, section 34, subdivision 2, as amended.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

 

STATE GOVERNMENT

 

Section 1.  [3.051] EVEN-YEAR SESSIONS. 

 

The legislature may not meet in regular session in an even-numbered year before the date set under section 202A.14 for the conduct of precinct caucuses.

 

Sec. 2.  Minnesota Statutes 2008, section 3.303, is amended by adding a subdivision to read:

 

Subd. 11.  Permanent school fund land management analyst.  The commission shall undertake activities that are necessary to advise the legislature and to monitor the executive branch on issues related to the management of permanent school fund lands.  The commission may hire a lead analyst and other staff as necessary for this purpose.  The commission shall:

 

(1) monitor management of permanent school fund lands;

 

(2) analyze the benefits derived from the fund;

 

(3) actively participate in the work of the Permanent School Fund Advisory Committee under section 127A.30;

 

(4) provide oversight to ensure that the state fulfills its fiduciary responsibilities to the permanent school fund as specified by the Minnesota Constitution and Minnesota Statutes; and

 

(5) make effective recommendations to the Permanent School Fund Advisory Committee and the finance divisions and committees of the house of representatives and the senate.

 

The purpose of this function is to maximize the long-term economic returns to the school trust lands consistent with the goals of section 127A.31.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.


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Sec. 3.  Minnesota Statutes 2008, section 3.85, subdivision 3, is amended to read:

 

Subd. 3.  Membership.  The commission consists of five seven members of the senate appointed by the Subcommittee on Committees of the Committee on Rules and Administration and five seven members of the house of representatives appointed by the speaker.  No more than five members from each chamber may be from the majority caucus in that chamber.  Members shall be appointed at the commencement of each regular session of the legislature for a two-year term beginning January 16 of the first year of the regular session.  Members continue to serve until their successors are appointed.  Vacancies that occur while the legislature is in session shall be filled like regular appointments.  If the legislature is not in session, senate vacancies shall be filled by the last Subcommittee on Committees of the senate Committee on Rules and Administration or other appointing authority designated by the senate rules, and house of representatives vacancies shall be filled by the last speaker of the house, or if the speaker is not available, by the last chair of the house of representatives Rules Committee.

 

Sec. 4.  Minnesota Statutes 2008, section 3.9225, subdivision 5, is amended to read:

 

Subd. 5.  Powers.  (a) The council may contract in its own name, but no money shall be accepted or received as a loan nor indebtedness incurred except as otherwise provided by law.  Contracts shall be approved by a majority of the members of the council and executed by the chair and the executive director.  The council may apply for, receive, and expend in its own name grants and gifts of money consistent with the power and duties specified in subdivisions 1 to 7.

 

(b) The council may solicit and accept payments for advertising, use of exhibition space, or commemorative videos or other items in connection with publications, events, media productions, and informational programs that are sponsored by the council.  These revenues must be deposited in an account in the special revenue fund and are appropriated to the council to defray costs of publications, events, media productions, or informational programs consistent with the powers and duties specified in subdivisions 1 to 7.  The council may not publish advertising or provide exhibition space for any elected official or candidate for elective office.  The council must report by January 15 each year to the chairs and ranking minority members of the house of representatives and senate funding divisions with jurisdiction over the council on the amount and source of each payment received under this paragraph in the prior fiscal year.

 

(c) The council shall appoint an executive director who is experienced in administrative activities and familiar with the problems and needs of Black people.  The council may delegate to the executive director powers and duties under subdivisions 1 to 7 which do not require council approval.  The executive director serves in the unclassified service and may be removed at any time by the council.  The executive director shall recommend to the council, and the council may appoint the appropriate staff necessary to carry out its duties.  Staff members serve in the unclassified service.  The commissioner of administration shall provide the council with necessary administrative services.

 

Sec. 5.  [3.9715] PAYMENT FROM HERITAGE FUNDS FOR AUDIT COSTS. 

 

The outdoor heritage fund, the clean water fund, the parks and trails fund, and the arts and cultural heritage fund, established in the Minnesota Constitution, article XI, section 15, must each pay the legislative auditor for costs incurred by the legislative auditor to examine financial activities related to each fund.  The legislative auditor shall provide cost data to the commissioner of management and budget to determine the amount of the required payments.  The amount required to make these payments is appropriated from each fund for payments to the legislative auditor under this section.  Amounts received by the legislative auditor under this section are appropriated to the legislative auditor for purposes of examining financial activities related to each fund.  The legislative auditor shall report by January 15 each year to the chairs and ranking minority members of the house of representatives and senate funding divisions with jurisdiction over the Office of the Legislative Auditor and the funds established in the Minnesota Constitution, article XI, section 15, on past and projected future expenditure of funds under this section.


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Sec. 6.  [5.025] ELECTION DAY VOLUNTEERS. 

 

The secretary of state may use unpaid secretary of state trained volunteers to assist the Office of the Secretary of State in providing customer service information on election days.

 

Sec. 7.  [10.61] TWO-SIDED PRINTING. 

 

A printer operated by an entity in the state executive, legislative, or judicial branch must be configured so that the default print option is for two-sided printing if it is feasible to set two-sided printing as the default.

 

Sec. 8.  Minnesota Statutes 2008, section 10A.01, subdivision 18, is amended to read:

 

Subd. 18.  Independent expenditure.  "Independent expenditure" means an expenditure expressly advocating the election or defeat of a clearly identified candidate, if the expenditure is made without the express or implied consent, authorization, or cooperation of, and not in concert with or at the request or suggestion of, any candidate or any candidate's principal campaign committee or agent.  An independent expenditure is not a contribution to that candidate.  An expenditure by a political party or political party unit in a race where the political party has a candidate on the ballot is not an independent expenditure An independent expenditure does not include the act of announcing a formal public endorsement of a candidate for public office, unless the act is simultaneously accompanied by an expenditure that would otherwise qualify as an independent expenditure under this subdivision.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 9.  Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision to read:

 

Subd. 37.  Independent expenditure political committee.  "Independent expenditure political committee" means a political committee that makes only independent expenditures and disbursements permitted under section 10A.121, subdivision 1.

 

Sec. 10.  Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision to read:

 

Subd. 38.  Independent expenditure political fund.  "Independent expenditure political fund" means a political fund that makes only independent expenditures and disbursements permitted under section 10A.121, subdivision 1.

 

Sec. 11.  Minnesota Statutes 2008, section 10A.12, is amended by adding a subdivision to read:

 

Subd. 1a.  When required for independent expenditures.  An association other than a political committee that makes only independent expenditures and disbursements permitted under section 10A.121, subdivision 1, must do so by forming and registering an independent expenditure political fund if the expenditure is in excess of $100 or by contributing to an existing independent expenditure political committee or political fund.

 

Sec. 12.  [10A.121] INDEPENDENT EXPENDITURE POLITICAL COMMITTEES AND INDEPENDENT EXPENDITURE POLITICAL FUNDS. 

 

Subdivision 1.  Permitted disbursements.  An independent expenditure political committee or an independent expenditure political fund, in addition to making independent expenditures, may: 

 

(1) pay costs associated with its fund-raising and general operations;

 

(2) pay for communications that do not constitute contributions or approved expenditures; and


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(3) make contributions to other independent expenditure political committees or independent expenditure political funds.

 

Subd. 2.  Penalty.  An independent expenditure political committee or independent expenditure political fund is subject to a civil penalty of up to four times the amount of the contribution or approved expenditure if it does the following:

 

(1) makes a contribution to a candidate, party unit, political committee, or political fund other than an independent expenditure political committee or an independent expenditure political fund; or

 

(2) makes an approved expenditure.

 

This penalty supersedes any penalty otherwise provided in statute.

 

Sec. 13.  Minnesota Statutes 2008, section 10A.20, subdivision 2, is amended to read:

 

Subd. 2.  Time for filing.  (a) The reports must be filed with the board on or before January 31 of each year and additional reports must be filed as required and in accordance with paragraphs (b) and (c).

 

(b) In each year in which the name of the candidate is on the ballot, the report of the principal campaign committee must be filed 15 days before a primary and ten days before a general election, seven days before a special primary and a special election, and ten days after a special election cycle.

 

(c) In each general election year, a political committee, political fund, or party unit must file reports 28 and 15 days before a primary and ten 42 and 15 days before a general election.  Beginning in 2012, reports required under this paragraph must also be filed 56 days before a primary.

 

Sec. 14.  Minnesota Statutes 2008, section 10A.20, subdivision 4, is amended to read:

 

Subd. 4.  Period of report.  A report must cover the period from the last day covered by the previous report January 1 of the reporting year to seven days before the filing date, except that the report due on January 31 must cover the period from the last day covered by the previous report to December 31.

 

Sec. 15.  Minnesota Statutes 2008, section 10A.20, subdivision 12, is amended to read:

 

Subd. 12.  Failure to file; penalty.  The board must send a notice by certified mail to any individual who fails to file a statement required by this section.  If an individual fails to file a statement due January 31 within ten business days after the notice was sent, the board may impose a late filing fee of $5 $25 per day, not to exceed $100 $1,000, commencing with the 11th day after the notice was sent.

 

If an individual fails to file a statement due before a primary or election within three days after the date due, regardless of whether the individual has received any notice, the board may impose a late filing fee of $50 per day, not to exceed $500 $1,000, commencing on the fourth day after the date the statement was due.

 

The board must send an additional notice by certified mail to an individual who fails to file a statement within 14 days after the first notice was sent by the board that the individual may be subject to a civil penalty for failure to file a statement.  An individual who fails to file the statement within seven days after the second notice was sent by the board is subject to a civil penalty imposed by the board of up to $1,000.

 

EFFECTIVE DATE.  This section is effective June 1, 2010, and applies to statements required to be filed on or after that date.


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Sec. 16.  Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision to read:

 

Subd. 14.  Contributions of business revenue.  An association may, if not prohibited by other law, contribute revenue from the operation of a business to an independent expenditure political committee or an independent expenditure political fund without complying with section 10A.27, subdivision 13.

 

Sec. 17.  Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision to read:

 

Subd. 15.  Contributions of dues or contribution revenue.  An association may, if not prohibited by other law, contribute revenue from membership dues or fees, or from contributions received by the association to an independent expenditure political committee or an independent expenditure political fund without complying with section 10A.27, subdivision 13.  Before the day when the recipient committee or fund's next report must be filed with the board under section 10A.20, subdivision 2 or 5, an association that has contributed $2,000 or more in aggregate to independent expenditure political committees or funds during the calendar year must provide in writing to the recipient's treasurer a statement that includes the name and address of each association that paid the association dues or fees, or made contributions to the association that, in total, aggregate $1,000 or more between January 1 of the calendar year and the date of the contribution.  The statement must be certified as true and correct by an officer of the contributing association.

 

Sec. 18.  Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision to read:

 

Subd. 16.  Treasurer to submit disclosure statements.  The treasurer of a political committee or political fund receiving a statement required under section 10A.27, subdivision 15, must file a copy of the statement before the deadline for the committee or fund's next report filed with the board under section 10A.20, subdivision 2 or 5, after receiving the statement.

 

Sec. 19.  Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision to read:

 

Subd. 17.  Penalty.  (a) An association that makes a contribution under section 10A.27, subdivision 15, and fails to provide the required statement within the time specified is subject to a civil penalty of up to four times the amount of the contribution, but not to exceed $25,000, except when the violation was intentional.

 

(b) An independent expenditure political committee or an independent expenditure political fund that files a report without including the statement required under section 10A.27, subdivision 15, is subject to a civil penalty of up to four times the amount of the contribution for which disclosure was not filed, but not to exceed $25,000, except when the violation was intentional.

 

(c) The penalties provided under this subdivision supersede any penalty otherwise provided in statute.

 

Sec. 20.  [16A.0561] MAPPED DATA ON EXPENDITURES. 

 

(a) Data on expenditure of money from the funds as specified under sections 3.303, subdivision 10, and 116P.08, may, if practicable, be made available on the Web in a manner that allows the public to obtain information about a project receiving an appropriation by clicking on a map.  To the extent feasible, the map should include or link to information about each project, including, but not limited to, the location, the name of the entity receiving the appropriation, the source of the appropriation, the amount of money received, and a general statement of the purpose of the appropriation.

 

(b) If requested, the Legislative Coordinating Commission may, to the extent practicable, provide relevant executive branch agencies with public geospatial data that it receives for its Web site required under section 3.303, subdivision 10.  The commissioner may make this information available to the public in a similar manner as information provided under paragraph (a).


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(c) In creating plans for public expenditures from all geographically locatable or project based appropriations, prospective budget and project planning should consider geographic and data reporting that would facilitate the goals of this section.

 

Sec. 21.  Minnesota Statutes 2008, section 16A.125, subdivision 5, is amended to read:

 

Subd. 5.  Forest trust lands.  (a) The term "state forest trust fund lands" as used in this subdivision, means public land in trust under the Constitution set apart as "forest lands under the authority of the commissioner" of natural resources as defined by section 89.001, subdivision 13.

 

(b) The commissioner of management and budget shall credit the revenue from the forest trust fund lands to the forest suspense account.  The account must specify the trust funds interested in the lands and the respective receipts of the lands.

 

(c) After a fiscal year, the commissioner of management and budget shall certify the total costs incurred for forestry during that year under appropriations for the protection, improvement, administration, and management of state forest trust fund lands and construction and improvement of forest roads to enhance the forest value of the lands.  The certificate must specify the trust funds interested in the lands.  The commissioner of natural resources shall supply the commissioner of management and budget with the information needed for the certificate.

 

(d) After a fiscal year, the commissioner shall distribute the receipts credited to the suspense account during that fiscal year as follows:

 

(1) the amount of the certified costs incurred by the state for forest management, forest improvement, and road improvement during the fiscal year shall be transferred to the forest management investment account established under section 89.039, including the costs associated with the Legislative Coordinating Commission's permanent school fund land management activities;

 

(2) the balance of the certified costs incurred by the state during the fiscal year shall be transferred to the general fund; and

 

(3) the balance of the receipts shall then be returned prorated to the trust funds in proportion to their respective interests in the lands which produced the receipts.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.

 

Sec. 22.  Minnesota Statutes 2008, section 16A.275, is amended to read:

 

16A.275 AGENCY RECEIPTS; DEPOSIT, REPORT, CREDIT. 

 

Subdivision 1.  If $250, daily.  Deposit receipts.  Except as otherwise provided by law, an agency shall deposit receipts totaling $250 $1,000 or more in the state treasury daily.  The depositing agency shall send a report to the commissioner on the disposition of receipts since the last report.  The commissioner shall credit the deposits received during a month to the proper funds not later than the first day of the next month.

 

Notwithstanding the general rule stated above, the commissioner of revenue is not required to make daily deposits if (1) the volume of tax receipts cannot be processed daily with available resources, or (2) receipts cannot be immediately identified for posting to accounts.


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Subd. 2.  Exception.  The commissioner may authorize an agency to deposit receipts totaling $250 $1,000 or more less frequently than daily for those locations where the agency furnishes documentation to the commissioner that the cost of making daily deposits exceeds the lost interest earnings and the risk of loss or theft of the receipts.

 

Sec. 23.  [16A.371] RECIPIENTS OF STATE GRANTS AND APPROPRIATIONS. 

 

(a) This section applies to a nonprofit organization that receives a direct appropriation of state funds or that receives a grant of state funds, if during the period covered by the appropriation or grant an officer or employee of the organization will receive a salary from the nonprofit organization or a related organization that exceeds the salary of the governor.  As a condition of receiving the direct appropriation or grant, a nonprofit organization covered by this section must agree that the organization will submit to the attorney general, during each year that the organization receives a direct appropriation or grant of state funds, a list of the total compensation of the three highest paid directors, officers, or employees of the organization.  The attorney general must make filings under this paragraph public in the same manner as annual reports filed under section 309.53.

 

(b) This section also applies to a health maintenance organization, as defined in section 62D.02, subdivision 4, that has a contract to provide services to the state or to state employees, if an officer or employee of the organization receives a salary that exceeds the salary of the governor.

 

(c) For purposes of this section:

 

(1) "nonprofit organization" includes a corporation, partnership, limited partnership, limited liability company, joint venture, cooperative, association, or trust, wherever incorporated, organized, or registered, if the organization is organized on a nonprofit basis;

 

(2) "related organization" has the meaning defined in section 317A.011, subdivision 18; and

 

(3) "total compensation" means salaries, fees, bonuses, fringe benefits, severance payments, and deferred compensation.

 

Sec. 24.  Minnesota Statutes 2008, section 16B.24, subdivision 3, is amended to read:

 

Subd. 3.  Disposal of old buildings.  (a) Upon request from the head of an agency with control of a state-owned building with an estimated market value of less than $50,000, as determined by the commissioner, the commissioner may sell, demolish, or otherwise dispose of the building if the commissioner determines that the building is no longer used or is a fire or safety hazard.

 

The commissioner, (b) Upon request of the head of an agency which has with control of a state-owned building which is no longer used or which is a fire or safety hazard, shall, with an estimated market value of $50,000 or more, as determined by the commissioner, the commissioner may sell, demolish, or otherwise dispose of the building after determining that the building is no longer used or is a fire or safety hazard and obtaining approval of the chairs of the senate Finance Committee and house of representatives Ways and Means Committee, sell, wreck, or otherwise dispose of the building. 

 

(c) In the event a sale is made under this subdivision, the proceeds shall be deposited in the proper account or in the general fund provided by law.  If there is no requirement in law specifying how proceeds must be deposited other than section 16A.72, the proceeds must be deposited in the account from which the appropriation to acquire or construct the building was made.  If the account from which the appropriation was made cannot be identified or has been terminated, the proceeds must be deposited in the general fund.


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Sec. 25.  Minnesota Statutes 2008, section 16B.322, subdivision 4, is amended to read:

 

Subd. 4.  Financing agreement.  The commissioner shall solicit proposals from private financial institutions on an individual project or line of credit basis and may enter into a financing agreement with one or more financial institutions.  If a financing agreement is for an individual project, the term of the financing agreement shall not exceed 15 years from the date of final completion of the energy improvement project.  The and a financing agreement is assignable to the state agency operating or managing the state building or facility improved by the energy improvement project.  The term of a financing agreement on an individual project basis must be less than the average expected useful life of the energy saving measures implemented under the project.  The proceeds from the financing agreement are appropriated to the commissioner and may be used for the purposes of this section and are available until spent.

 

Sec. 26.  Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4a, is amended to read:

 

Subd. 4a.  Financing agreement.  The commissioner of administration may, in connection with a financing agreement, covenant in a master lease-purchase agreement that the state will abide by the terms and provisions that are customary in net lease or lease-purchase transactions including, but not limited to, covenants providing that the state:

 

(1) will maintain insurance as required under the terms of the lease agreement;

 

(2) is responsible to the lessor for any public liability or property damage claims or costs related to the selection, use, or maintenance of the leased equipment, to the extent of insurance or self-insurance maintained by the lessee, and for costs and expenses incurred by the lessor as a result of any default by the lessee;

 

(3) authorizes the lessor to exercise the rights of a secured party with respect to the equipment subject to the lease in the event of default by the lessee and, in addition, for the present recovery of lease rentals due during the current term of the lease as liquidated damages.

 

Sec. 27.  Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4b, is amended to read:

 

Subd. 4b.  Master lease-purchase agreements not debt.  A tax-exempt lease-purchase agreement related to a financing agreement under this section does not constitute or create a general or moral obligation or indebtedness of the state in excess of the money from time to time appropriated or otherwise available for the payment of rent coming due under the lease, and the state has no continuing obligation to appropriate money for the payment of rent or other obligations under the lease agreement.  Rent due under a master lease-purchase financing agreement under this section during a current lease term for which money has been appropriated is a current expense of the state. 

 

Sec. 28.  Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4c, is amended to read:

 

Subd. 4c.  Budget offset.  The commissioner shall require a state agency that uses the state energy improvement program to certify that the agency will budget, allocate, and commit agency funds sufficient to make rent payments under a financing agreement until all rent obligations are paid in full.  In the event a participating agency fails to make a rent payment, the commissioner of management and budget shall reduce the operating budgets budget of the state agencies that use the master lease-purchase program under a financial agreement agency.  The amount of the reduction is the amount sufficient to make the actual master lease payments.

 

Sec. 29.  Minnesota Statutes 2008, section 16B.322, subdivision 5, is amended to read:

 

Subd. 5.  Qualifying energy improvement projects.  The commissioner may approve an energy improvement project and enter into for a financing agreement if the commissioner determines that:

 

(1) the project and project financing agreement have been approved by the governing body or head of the state agency that operates or manages the state building or facility to be improved;


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(2) the project is technically and economically feasible;

 

(3) the state agency that operates or manages the state building or facility has made adequate provision for the operation and maintenance of the project;

 

(4) if an energy efficiency improvement, the project is calculated to result in a positive cash flow in each year the financing agreement is in effect;

 

(5) the project proposer has fully explored the use of conservation investment plan opportunities under section 216B.241 with the utilities providing gas and electric service to the energy improvement project;

 

(6) if a renewable energy improvement, the project is calculated to reduce use of fossil-fuel energy; and

 

(7) if a geothermal energy improvement, the project is calculated to produce savings in terms of nongeothermal energy and costs.

 

For the purpose of clause (6), "renewable energy" is energy produced by an eligible energy technology as defined in section 216B.1691, subdivision 1, paragraph (a), clause (1).

 

Sec. 30.  [16B.535] FLEET MANAGEMENT; CONSOLIDATION. 

 

(a) The Department of Administration shall ensure optimum efficiency and economy in the fleet management activities of all state agencies.  The department must:

 

(1) maintain a current fleet management inventory and maintenance cost accounting system that includes all state-owned or leased motor vehicles;

 

(2) develop uniform state policies and guidelines for vehicle acquisition, replacement, use, fuel, maintenance, and recording of operational and other costs; and

 

(3) study the cost-effectiveness of consolidating or privatizing the state vehicle fleet or sections of the state vehicle fleet, including documenting the current status of fleet consolidation or privatization and assessing the cost-effectiveness of further consolidation or privatization of the state vehicle fleet.

 

(b) When requested by the governor or the legislature, the department must submit information detailing the costs associated with fleet operations based upon a statewide uniform cost accounting system.

 

(c) State agencies authorized by the Department of Administration may operate a vehicle fleet management program.  Each such agency shall assign a fleet manager who shall operate the agency's fleet program in accordance with policies and guidelines established by the Department of Administration. 

 

(d) Each fleet manager must review the use of state-owned or leased vehicles within their agency at least annually to determine whether vehicle utilization meets best practices criteria as determined by the Department of Administration.

 

Sec. 31.  Minnesota Statutes 2008, section 16C.055, subdivision 2, is amended to read:

 

Subd. 2.  Restriction.  After July 1, 2002, an agency may not enter into a contract or otherwise agree with a nongovernmental entity to receive total nonmonetary consideration valued at more than $100,000 annually in exchange for the agency providing nonmonetary consideration, unless such an agreement is specifically authorized by law.  This subdivision does not apply to the State Lottery.


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Sec. 32.  Minnesota Statutes 2009 Supplement, section 16E.02, subdivision 1, is amended to read:

 

Subdivision 1.  Office management and structure.  (a) The chief information officer is appointed by the governor.  The chief information officer serves in the unclassified service at the pleasure of the governor.  The chief information officer must have experience leading enterprise-level information technology organizations.  The chief information officer is the state's chief information officer and information and telecommunications technology advisor to the governor.

 

(b) The chief information officer may appoint other employees of the office.  The staff of the office must include individuals knowledgeable in information and telecommunications technology systems and services and individuals with specialized training in information security and accessibility.

 

(c) The chief information officer may appoint a Webmaster responsible for the supervision and development of state Web sites under the control of the office.  The Webmaster, if appointed, shall ensure that these Web sites are maintained in an easily accessible format that is consistent throughout state government and are consistent with the accessibility standards developed under section 16E.03, subdivision 9.  The Webmaster, if appointed, shall provide assistance and guidance consistent with the requirements of this paragraph to other state agencies for the maintenance of other Web sites not under the direct control of the office.

 

Sec. 33.  Minnesota Statutes 2008, section 16E.04, subdivision 2, is amended to read:

 

Subd. 2.  Responsibilities.  (a) In addition to other activities prescribed by law, the office shall carry out the duties set out in this subdivision.

 

(b) The office shall develop and establish a state information architecture to ensure:

 

(1) that state agency development and purchase of information and communications systems, equipment, and services is designed to ensure that individual agency information systems complement and do not needlessly duplicate or conflict with the systems of other agencies; and

 

(2) enhanced public access to data can be provided consistent with standards developed under section 16E.05, subdivision 4. 

 

When state agencies have need for the same or similar public data, the chief information officer, in coordination with the affected agencies, shall manage the most efficient and cost-effective method of producing and storing data for or sharing data between those agencies.  The development of this information architecture must include the establishment of standards and guidelines to be followed by state agencies.  The office shall ensure compliance with the architecture.

 

(c) The office shall assist state agencies in the planning and management of information systems so that an individual information system reflects and supports the state agency's mission and the state's requirements and functions.  The office shall review and approve agency technology plans to ensure consistency with enterprise information and telecommunications technology strategy.  By January 15 of each year, the chief information officer must report to the chairs and the ranking minority members of the legislative committees and divisions with jurisdiction over the office regarding the assistance provided under this paragraph.  The report must include a listing of agencies that have developed or are developing plans under this paragraph.

 

(d) The office shall review and approve agency requests for funding for the development or purchase of information systems equipment or software before the requests may be included in the governor's budget.

 

(e) The office shall review major purchases of information systems equipment to:


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(1) ensure that the equipment follows the standards and guidelines of the state information architecture;

 

(2) ensure the agency's proposed purchase reflects a cost-effective policy regarding volume purchasing; and

 

(3) ensure that the equipment is consistent with other systems in other state agencies so that data can be shared among agencies, unless the office determines that the agency purchasing the equipment has special needs justifying the inconsistency.

 

(f) The office shall review the operation of information systems by state agencies and ensure that these systems are operated efficiently and securely and continually meet the standards and guidelines established by the office.  The standards and guidelines must emphasize uniformity that is cost-effective for the enterprise, that encourages information interchange, open systems environments, and portability of information whenever practicable and consistent with an agency's authority and chapter 13.

 

(g) The office shall conduct a comprehensive review at least every three years of the information systems investments that have been made by state agencies and higher education institutions.  The review must include recommendations on any information systems applications that could be provided in a more cost-beneficial manner by an outside source.  The office must report the results of its review to the legislature and the governor.

 

Sec. 34.  Minnesota Statutes 2008, section 16E.05, is amended by adding a subdivision to read:

 

Subd. 4.  Standards for transparency.  The chief information officer, in consultation with the Information Policy Analysis Division of the Department of Administration, shall develop standards to enhance public access to electronic data maintained by state government, consistent with the requirements of chapter 13.  The standards must ensure that:

 

(1) the state information architecture facilitates public access to agency data;

 

(2) publicly available data is managed using an approved state metadata model; and

 

(3) all geospatial data conform to an approved state geocode model.

 

Sec. 35.  Minnesota Statutes 2008, section 43A.50, subdivision 2, is amended to read:

 

Subd. 2.  Registration.  (a) A federated funding organization shall apply to the commissioner by March 1 in order to be eligible to participate in the state employee combined charities campaign for that year. 

 

(b) A federated funding organization must apply in the form prescribed by the commissioner and shall provide the following: 

 

(1) assurance of tax exempt status for the federated funding organization and each of the charitable agencies identified by the federated funding organization as an affiliated agency;

 

(2) assurance of proper registration with the attorney general of Minnesota to solicit contributions in the state of Minnesota for the federated funding organization and each of the charitable agencies identified by the federated funding organization as an affiliated agency.  A copy of the registration letter in effect at the time of application for the state employee combined charities campaign must be available upon request;

 

(3) an affidavit signed by a duly constituted officer of the federated funding organization attesting to the fact that the federated funding organization and its affiliated agencies are in compliance with each of the provisions of this section;


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(4) a list of the board of directors or local advisory board for the federated funding organization which identifies the members who live or work in Minnesota and contiguous counties;

 

(5) a list of the name and business address of each affiliated agency the federated funding organization supports;

 

(6) a list of any related organizations, as defined in section 317A.011, subdivision 18;

 

(7) the total contributions received in the organization's accounting year last reported and, from those contributions, the amounts expended by the federated funding organization for management and general costs and for fund-raising costs and the amount distributed to the affiliated agencies, programs, and designated agencies it supports; and

 

(8) a fee of $100, or ten percent of the funds raised from state employees in the previous campaign, whichever is less.  The fee for an organization which did not participate in the previous year's state employee campaign is $100.  These fees must be deposited into an account in the special revenue fund and are appropriated to the commissioner to be expended with the approval of the Combined Charities Board in section 43A.04 for costs associated with administering the annual campaign. 

 

The commissioner may require submission of additional information needed to determine compliance with the provisions of this chapter. 

 

(c) The commissioner shall register or not register the application of an organization and shall notify the organization of the decision by May 1.  An organization whose application is denied has ten calendar days after receiving notice of the denial to appeal the decision or file an amended application correcting the deficiency.  The commissioner shall register or not register the organization within ten calendar days after receiving the appeal or amended application.  If registration is denied a second time, the organization may appeal within five calendar days after receiving notice of the denial.  A hearing shall be scheduled by the commissioner and shall be held within 15 calendar days after receiving notice of the appeal.  The parties may mutually agree to a later date.  The provisions of chapter 14 do not apply to the hearing.  The hearing shall be conducted in a manner considered appropriate by the commissioner.  The commissioner shall make a determination within five calendar days after the hearing has been completed. 

 

(d) Only organizations that are approved may participate in the state employee combined charities campaign for the year of approval and only contributions to approved organizations may be deducted from an employee's pay pursuant to section 16A.134. 

 

Sec. 36.  Minnesota Statutes 2008, section 79.34, subdivision 1, is amended to read:

 

Subdivision 1.  Conditions requiring membership.  The nonprofit association known as the Workers' Compensation Reinsurance Association may be incorporated under chapter 317A with all the powers of a corporation formed under that chapter, except that if the provisions of that chapter are inconsistent with sections 79.34 to 79.40, sections 79.34 to 79.40 govern.  Each insurer as defined by section 79.01, subdivision 2, shall, as a condition of its authority to transact workers' compensation insurance in this state, be a member of the reinsurance association and is bound by the plan of operation of the reinsurance association; provided, that all affiliated insurers within a holding company system as defined in chapter 60D are considered a single entity for purposes of the exercise of all rights and duties of membership in the reinsurance association.  Each self-insurer approved under section 176.181 and each political subdivision that self-insures shall, as a condition of its authority to self-insure workers' compensation liability in this state, be a member of the reinsurance association and is bound by its plan of operation; provided that: 


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(1) all affiliated companies within a holding company system, as determined by the commissioner of labor and industry in a manner consistent with the standards and definitions in chapter 60D, are considered a single entity for purposes of the exercise of all rights and duties of membership in the reinsurance association; and

 

(2) all group self-insurers granted authority to self-insure pursuant to section 176.181 are considered single entities for purposes of the exercise of all the rights and duties of membership in the reinsurance association.  As a condition of its authority to self-insure workers' compensation liability, and for losses incurred after December 31, 1983, the state is a member of the reinsurance association and is bound by its plan of operation.  The commissioner of management and budget administration represents the state in the exercise of all the rights and duties of membership in the reinsurance association.  The amounts necessary to pay the state's premiums required for coverage by the Workers' Compensation Reinsurance Association are appropriated from the general fund to the commissioner of management and budget administration.  The University of Minnesota shall pay its portion of workers' compensation reinsurance premiums directly to the Workers' Compensation Reinsurance Association.  For the purposes of this section, "state" means the administrative branch of state government, the legislative branch, the judicial branch, the University of Minnesota, and any other entity whose workers' compensation liability is paid from the state revolving fund.  The commissioner of management and budget may calculate, prorate, and charge a department or agency the portion of premiums paid to the reinsurance association for employees who are paid wholly or in part by federal funds, dedicated funds, or special revenue funds.  The reinsurance association is not a state agency.  Actions of the reinsurance association and its board of directors and actions of the commissioner of labor and industry with respect to the reinsurance association are not subject to chapters 13 and 15.  All property owned by the association is exempt from taxation.  The reinsurance association is not obligated to make any payments or pay any assessments to any funds or pools established pursuant to this chapter or chapter 176 or any other law. 

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 37.  Minnesota Statutes 2008, section 103F.755, is amended to read:

 

103F.755 INTEGRATION OF DATA. 

 

The data collected for the activities of the clean water partnership program that have common value for natural resource planning must be provided and integrated into the Minnesota land management information system's geographic and summary databases according to published data compatibility guidelines made available using standards adopted by the Office of Enterprise Technology and geospatial technology standards and guidelines published by the Minnesota Geospatial Information Office.  Costs associated with this data delivery must be borne by this activity.

 

Sec. 38.  Minnesota Statutes 2008, section 103H.175, as amended by Laws 2009, chapter 101, article 2, section 107, is amended to read:

 

103H.175 GROUNDWATER QUALITY MONITORING. 

 

Subdivision 1.  Monitoring results to be submitted to the Minnesota Geospatial Information Office made available using state data standards.  The results of monitoring groundwater quality by state agencies and political subdivisions must be submitted to made available using standards adopted by the Office of Enterprise Technology and geospatial technology standards and guidelines published by the Minnesota Geospatial Information Office.

 

Subd. 2.  Computerized database.  The Minnesota Geospatial Information Office Agencies monitoring groundwater shall maintain a computerized database databases of the results of groundwater quality monitoring in a manner that is accessible to the Pollution Control Agency, Department of Agriculture, Department of Health, and Department of Natural Resources.  The center shall assess the quality and reliability of the data and organize the data in a usable format.


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Subd. 3.  Report.  In each even-numbered year, the Pollution Control Agency, in cooperation with other agencies participating in the monitoring of water resources, shall provide a draft report on the status of groundwater monitoring to the Environmental Quality Board for review and then to the house of representatives and senate committees with jurisdiction over the environment, natural resources, and agriculture as part of the report in section 103A.204. 

 

Sec. 39.  Minnesota Statutes 2008, section 115A.15, subdivision 4, is amended to read:

 

Subd. 4.  Staff.  The commissioner of administration shall may employ an administrator to manage the resource recovery program and other staff and consultants as are necessary to carry out the program.

 

Sec. 40.  Minnesota Statutes 2008, section 115A.15, subdivision 9, is amended to read:

 

Subd. 9.  Recycling goal.  By December 31, 1996, the commissioner shall recycle at least 60 percent by weight of the solid waste generated by state offices and other state operations located in the metropolitan area The goal of the resource recovery program is to recycle at least 60 percent of the solid waste generated by state offices and other state operations.  By March 1 of each year, the commissioner shall report to the Pollution Control Agency the estimated recycling rates by county for state offices and other state operations in the metropolitan area for the previous calendar year.  The Pollution Control Agency shall incorporate these figures into the reports submitted by the counties under section 115A.557, subdivision 3, to determine each county's progress toward the goal in section 115A.551, subdivision 2. 

 

Each state agency in the metropolitan area shall work to meet the recycling goal individually.  If the goal is not met by an agency, the commissioner shall notify that agency that the goal has not been met and the reasons the goal has not been met and shall provide information to the employees in the agency regarding recycling opportunities and expectations The commissioner shall provide agencies with their performance against the goal along with information about recycling opportunities to increase their performance.

 

Sec. 41.  Minnesota Statutes 2008, section 115A.15, subdivision 10, is amended to read:

 

Subd. 10.  Materials recovery facility; materials collection; waste audits.  (a) The commissioner of the Department of Administration shall establish a central materials recovery facility to manage recyclable materials collected from state offices and other state operations in the metropolitan area.  The facility must be located as close as practicable to the State Capitol complex and must be large enough to accommodate temporary storage of recyclable materials collected from state offices and other state operations in the metropolitan area and the processing of those materials for market.

 

(b) The commissioner shall establish a recyclable materials collection and transportation system for state offices and other state operations in the metropolitan area that will maximize the types and amount of materials collected and the number of state offices and other state operations served, and will minimize barriers to effective and efficient collection, transportation, and marketing of recyclable materials.

 

(c) The commissioner shall may perform regular audits on the solid waste and recyclable materials collected to identify materials upon which to focus waste reduction, reuse, and recycling activities and to measure:

 

(1) progress made toward the recycling goal in subdivision 9;

 

(2) progress made to reduce waste generation; and

 

(3) potential for additional waste reduction, reuse, and recycling.


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(d) The commissioner may contract with private entities for the activities required in this subdivision if the commissioner determines that it would be cost-effective to do so.

 

Sec. 42.  Minnesota Statutes 2008, section 127A.30, subdivision 2, is amended to read:

 

Subd. 2.  Duties.  The advisory committee, in conjunction with the Legislative Coordinating Commission, shall review the policies of the Department of Natural Resources and current statutes on management of school trust fund lands at least annually and shall recommend necessary changes in statutes, policy, and implementation in order to ensure provident utilization of the permanent school fund lands.  By January 15 of each year, the advisory committee shall submit a report to the legislature with recommendations for the oversight and management of school trust lands to secure long-term economic return for the permanent school fund, consistent with sections 92.121 and 127A.31.  The committee's annual report may include recommendations to:

 

(1) manage the school trust lands efficiently;

 

(2) reduce the management expenditures of school trust lands and maximize the revenues deposited in the permanent school trust fund;

 

(3) manage the sale, exchange, and commercial leasing of school trust lands to maximize the revenues deposited in the permanent school trust fund and retain the value from the long-term appreciation of the school trust lands; and

 

(4) manage the school trust lands to maximize the long-term economic return for the permanent school trust fund while maintaining sound natural resource conservation and management principles.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.

 

Sec. 43.  Minnesota Statutes 2008, section 211B.01, subdivision 3, is amended to read:

 

Subd. 3.  Candidate.  "Candidate" means an individual who seeks nomination or election to a federal, statewide, legislative, judicial, or local office including special districts, school districts, towns, home rule charter and statutory cities, and counties, except candidates for president and vice-president of the United States.

 

Sec. 44.  Minnesota Statutes 2008, section 211B.04, is amended to read:

 

211B.04 CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER. 

 

(a) A person who participates in the preparation or dissemination of campaign material other than as provided in section 211B.05, subdivision 1, that does not prominently include the name and address of the person or committee causing the material to be prepared or disseminated in a disclaimer substantially in the form provided in paragraph (b) or (c) is guilty of a misdemeanor. 

 

(b) Except in cases covered by paragraph (c), the required form of disclaimer is:  "Prepared and paid for by the ..........  committee, .........(address)" for material prepared and paid for by a principal campaign committee, or "Prepared and paid for by the ..........  committee, .........(address), in support of .........(insert name of candidate or ballot question)" for material prepared and paid for by a person or committee other than a principal campaign committee.

 

(c) In the case of broadcast media, the required form of disclaimer is:  "Paid for by the ............  committee."


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(d) Campaign material that is not circulated on behalf of a particular candidate or ballot question must also include in the disclaimer either that it is "in opposition to .....(insert name of candidate or ballot question.....)"; or that "this publication is not circulated on behalf of any candidate or ballot question."

 

(e) This section does not apply to objects stating only the candidate's name and the office sought, fund-raising tickets, or personal letters that are clearly being sent by the candidate.

 

(f) This section does not apply to an individual or association who acts independently of any candidate, candidate's committee, political committee, or political fund and spends only from the individual's or association's own resources a sum that is less than $500 $2,000 in the aggregate to produce or distribute campaign material that is distributed at least seven days before the election to which the campaign material relates.

 

(g) This section does not modify or repeal section 211B.06. 

 

EFFECTIVE DATE.  This section is effective June 1, 2010, and applies to campaign material prepared or disseminated on or after that date.

 

Sec. 45.  Minnesota Statutes 2008, section 211B.15, subdivision 2, is amended to read:

 

Subd. 2.  Prohibited contributions.  A corporation may not make a contribution or offer or agree to make a contribution, directly or indirectly, of any money, property, free service of its officers, employees, or members, or thing of monetary value to a major political party, organization, committee, or individual to promote or defeat the candidacy of an individual for nomination, election, or appointment to a political office.  For the purpose of this subdivision, "contribution" includes an expenditure to promote or defeat the election or nomination of a candidate to a political office that is made with the authorization or expressed or implied consent of, or in cooperation or in concert with, or at the request or suggestion of, a candidate or committee established to support or oppose a candidate but does not include an independent expenditure authorized by subdivision 3.

 

Sec. 46.  Minnesota Statutes 2008, section 211B.15, subdivision 3, is amended to read:

 

Subd. 3.  Independent expenditures.  A corporation may not make an independent expenditure or offer or agree to make an independent expenditure to promote or defeat the candidacy of an individual for nomination, election, or appointment to a political office, unless the expenditure is an independent expenditure.  For the purpose of this subdivision, "independent expenditure" means an expenditure that is not made with the authorization or expressed or implied consent of, or in cooperation or concert with, or at the request or suggestion of, a candidate or committee established to support or oppose a candidate has the meaning given in section 10A.01, subdivision 18.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 47.  Minnesota Statutes 2008, section 216B.16, is amended by adding a subdivision to read:

 

Subd. 18.  Election or ballot question expenses.  The commission may not allow a public utility to recover from ratepayers expenses resulting from a contribution or expenditure made for a political purpose, as defined in section 211B.01.  This subdivision does not prohibit a public utility from engaging in political activity or making a contribution or expenditure otherwise permitted by law.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.


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Sec. 48.  Minnesota Statutes 2008, section 307.08, subdivision 5, is amended to read:

 

Subd. 5.  Cost; use of data.  The cost of authentication, recording, surveying, and marking burial grounds and the cost of identification, analysis, rescue, and reburial of human remains on public lands or waters shall be the responsibility of the state or political subdivision controlling the lands or waters.  On private lands or waters these costs shall be borne by the state, but may be borne by the landowner upon mutual agreement with the state.  The data collected by this activity that has common value for resource planning must be provided and integrated into the Minnesota land management information system's geographic and summary databases according to published data compatibility guidelines.  The State Archaeologist must make the data collected for this activity available using standards adopted by the Office of Enterprise Technology and geospatial technology standards and guidelines published by the Minnesota Geospatial Information Office.  Costs associated with this data delivery must be borne by the state.

 

Sec. 49.  Minnesota Statutes 2008, section 318.02, subdivision 1, is amended to read:

 

Subdivision 1.  Definition.  The term "declaration of trust" as used in this section means the declaration of trust, business trust instrument, trust indenture, contract of custodianship, or other instrument pursuant to which such association is organized.  Every such association organized after April 20, 1961, for the purpose of transacting business in this state shall, prior to transacting any business in this state, file in the Office of the Secretary of State a true and correct copy of the "declaration of trust" under which the association proposes to conduct its business.  The copy shall also contain a statement that the true and correct copy of the "declaration of trust" is being filed in the Office of the Secretary of State of the state of Minnesota pursuant to this chapter and shall also include the full name and street address of an agent of the business trust in this state.  That agent shall be the agent for service of process which shall be made pursuant to the provisions of section 543.08.  The "declaration of trust" may provide that the duration of such association shall be perpetual.  Upon the filing of the copy of the "declaration of trust," and the payment of a filing fee of $150 to the secretary of state, the secretary of state shall issue to such association, or to the trustees named in the said "declaration of trust," or to the persons or parties to the "declaration of trust," a certificate showing that such "declaration of trust" has been duly filed; whereupon, such association in its name shall be authorized to transact business in this state; provided that all other applicable laws have been complied with.  The "declaration of trust" may be amended as provided in the "declaration of trust" or in any amendments thereto but a true and correct copy of all amendments to the "declaration of trust," shall be filed in the Office of the Secretary of State upon the payment of a filing fee of $50 to the secretary of state and all amendments shall become effective at the time of said filing.  When such copy of the "declaration of trust" and any amendments thereto shall have been filed in the Office of the Secretary of State it shall constitute public notice as to the purposes and manner of the business to be engaged in by such association. 

 

Sec. 50.  Minnesota Statutes 2008, section 336.9-531, is amended to read:

 

336.9-531 ELECTRONIC ACCESS; LIABILITY; RETENTION. 

 

(a) Electronic access.  The secretary of state may allow private parties to have electronic access to the central filing system and to other computerized records maintained by the secretary of state on a fee basis, except that:  (1) visual access to electronic display terminals at the public counters at the Secretary of State's Office must be without charge and must be available during public counter hours; and (2) access by law enforcement personnel, acting in an official capacity, must be without charge.  If the central filing system allows a form of electronic access to information regarding the obligations of debtors, the access must be available 24 hours a day, every day of the year.  Notwithstanding section 13.355, private parties who have electronic access to computerized records may view the Social Security number information about a debtor that is of record.

 

Notwithstanding section 13.355, a filing office may include Social Security number information in an information request response under section 336.9-523 or a search of other liens in the central filing system.  A filing office may also include Social Security number information on a photocopy or electronic copy of a record whether


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provided in an information request response or in response to a request made under section 13.03.  Any Social Security number information or tax identification number information in the possession of the secretary of state is private data on individuals or nonpublic data.

 

(b) Liability.  The secretary of state, county recorders, and their employees and agents are not liable for any loss or damages arising from errors in or omissions from information entered into the central filing system as a result of the electronic transmission of tax lien notices under sections 268.058, subdivision 1, paragraph (c); 270C.63, subdivision 4; 272.483; and 272.488, subdivisions 1 and 3.

 

The state, the secretary of state, counties, county recorders, and their employees and agents are immune from liability that occurs as a result of errors in or omissions from information provided from the central filing system.

 

(c) Retention.  Once the image of a paper record has been captured by the central filing system, the secretary of state may remove or direct the removal from the files and destroy the paper record.

 

EFFECTIVE DATE.  This section is effective for financing statements filed in the central filing system after November 30, 2010.

 

Sec. 51.  Minnesota Statutes 2008, section 336A.08, subdivision 1, is amended to read:

 

Subdivision 1.  Compilation.  (a) The secretary of state shall compile the information on effective financing statements in the computerized filing system into a master list:

 

(1) organized according to farm product;

 

(2) arranged within each product:

 

(i) in alphabetical order according to the last name of the individual debtor or, in the case of debtors doing business other than as individuals, the first word in the name of the debtors;

 

(ii) in numerical order according to the Social Security number of the individual debtor or, in the case of debtors doing business other than as individuals, the Internal Revenue Service taxpayer identification number of the debtors unique identifier assigned by the secretary of state to, and associated with, the Social Security or tax identification number of the debtor;

 

(iii) geographically by county; and

 

(iv) by crop year;

 

(3) containing the information provided on an effective financing statement; and

 

(4) designating any applicable terminations of the effective financing statement.

 

(b) The secretary of state shall compile information from lien notices recorded in the computerized filing system into a statutory lien master list in alphabetical order according to the last name of the individual debtor or, in the case of debtors doing business other than as individuals, the first word in the name of the debtors.  The secretary of state may also organize the statutory lien master list according to one or more of the categories of information established in paragraph (a).  Any terminations of lien notices must be noted.

 

EFFECTIVE DATE.  This section is effective for lists compiled pursuant to this section after October 31, 2010.


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Sec. 52.  Minnesota Statutes 2008, section 336A.08, subdivision 4, is amended to read:

 

Subd. 4.  Distribution of master and partial lists.  (a) The secretary of state shall maintain the information on the effective financing statement master list:

 

(1) by farm product arranged alphabetically by debtor; and

 

(2) by farm product arranged numerically by the debtor's Social Security number for an individual debtor or, in the case of debtors doing business other than as individuals, the Internal Revenue Service taxpayer identification number of the debtors unique identifier assigned by the secretary of state to, and associated with, the Social Security or tax identification number of the debtor.

 

(b) The secretary of state shall maintain the information in the farm products statutory lien master list by county arranged alphabetically by debtor.

 

(c) The secretary of state shall distribute or make available the requested master and partial master lists on a monthly basis to farm product dealers registered under section 336A.11.  Lists will be distributed or made available on or before the tenth day of each month or on the next business day thereafter if the tenth day is not a business day. 

 

(d) The secretary of state shall make the master and partial master lists available as written or printed paper documents and may make lists available in other forms or media, including:

 

(1) any electronically transmitted medium; or

 

(2) any form of digital media.

 

(e) There shall be no fee for partial or master lists distributed via an electronically transmitted medium.  The annual fee for any other form of digital media is $200.  The annual fee for paper partial lists is $250 and $400 for paper master lists.

 

(f) A farm products dealer shall register pursuant to section 336A.11 by the last business day of the month to receive the monthly lists requested by the farm products dealer for that month. 

 

(g) If a registered farm products dealer receives a monthly list that cannot be read or is incomplete, the farm products dealer must immediately inform the secretary of state by telephone or e-mail of the problem.  The registered farm products dealer shall confirm the existence of the problem by writing to the secretary of state.  The secretary of state shall provide the registered farm products dealer with new monthly lists in the medium chosen by the registered farm products dealer no later than five business days after receipt of the oral notice from the registered farm products dealer.  A registered farm products dealer is not considered to have received notice of the information on the monthly lists until the duplicate list is received from the secretary of state or until five days have passed since the duplicate lists were deposited in the mail by the secretary of state, whichever comes first.

 

(h) On receipt of a written notice pursuant to section 336A.13, the secretary of state shall duplicate the monthly lists requested by the registered farm products dealer.  The duplicate monthly lists must be sent to the registered farm products dealer no later than five business days after receipt of the written notice from the registered farm products dealer. 

 

(i) A registered farm products dealer may request monthly lists in one medium per registration.


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(j) Registered farm products dealers must have renewed their registration before the first day of July each year.  Failure to send in the registration before that date will result in the farm products dealer not receiving the requested monthly lists.

 

(k) Registered farm products dealers choosing to obtain monthly lists via an electronically transmitted medium or in any form of digital media may choose to receive all of the information for the monthly lists requested the first month and then only additions and deletions to the database for the remaining 11 months of the year.  Following the first year of registration, the registered farm products dealer may choose to continue to receive one copy of the full monthly list at the beginning of each year or may choose to receive only additions and deletions.

 

EFFECTIVE DATE.  This section is effective for lists distributed pursuant to this section after October 31, 2010.

 

Sec. 53.  Minnesota Statutes 2008, section 336A.14, is amended to read:

 

336A.14 RESTRICTED USE OF INFORMATION. 

 

Any Social Security number information or tax identification number information in the possession of the secretary of state is private data on individuals or nonpublic data.  Information obtained from the seller of a farm product relative to the Social Security number or tax identification number of the true owner of the farm product and all information obtained from the master or limited list may not be used for purposes that are not related to:  (1) purchase of a farm product; (2) taking a security interest against a farm product; or (3) perfecting a farm product statutory lien.

 

EFFECTIVE DATE.  This section is effective October 31, 2010.

 

Sec. 54.  Minnesota Statutes 2009 Supplement, section 365.46, subdivision 2, is amended to read:

 

Subd. 2.  Copies.  The county auditor shall also secretary of state shall send a copy of the notice of the dissolution to:  (1) the state demographer, (2) the Minnesota Geospatial Information Office, (3) the chief administrative law judge of the state Office of Administrative Hearings, and (4) the commissioner of transportation, and (5) the commissioner of revenue. 

 

Sec. 55.  Minnesota Statutes 2009 Supplement, section 379.05, is amended to read:

 

379.05 AUDITOR TO SUM UP REPORT FOR STATE, MAKE TOWN RECORD. 

 

Each county auditor shall within 30 days after any such town is organized transmit by mail or appropriate digital technology to the commissioner of revenue, the secretary of state, the state demographer, the Minnesota Geospatial Information Office, the chief administrative law judge of the state Office of Administrative Hearings, and the commissioner of transportation an abstract of such report, giving the name and boundaries of such town and record in a book kept for that purpose a full description of each such town.  The secretary of state shall distribute copies of the abstract to the commissioner of revenue, state demographer, the Minnesota Geospatial Information Office, the chief administrative law judge of the state Office of Administrative Hearings, and the commissioner of transportation.

 

Sec. 56.  Minnesota Statutes 2008, section 557.01, is amended to read:

 

557.01 NONRESIDENT, AGENT TO ACCEPT SERVICE. 

 

Any nonresident person or corporation owning or claiming any interest or lien in or upon lands in the state may file with the secretary of state a writing, executed and acknowledged in the manner of a conveyance, appointing a resident agent, whose place of residence shall be stated, to accept service of process or summons in any action or


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proceeding in the courts of the state concerning such interest or lien, except actions or proceedings for the collection of taxes, and consenting that service of such process or summons upon such agent shall be binding upon the person executing the same.  Such writing shall be recorded by the secretary.  No service by publication of summons shall be made upon any such nonresident who has complied with the provisions hereof, but in all such cases service of such process or summons, or of any writ or notice in the action or proceedings, shall be made upon such agent in the manner provided by law for such service upon residents of the state, and have the same effect as personal service within the state upon such owner or claimant; but, if such party appears by attorneys therein, the service of papers shall thereafter be upon such attorney.  The authority of such agent may be revoked by writing similarly executed and acknowledged and recorded, but no revocation shall affect any action or proceeding then pending.  For filing and recording such papers the secretary shall be entitled to 15 cents for each folio The fee for each filing made under this section is $50.

 

Sec. 57.  Laws 2010, chapter 189, section 35, subdivision 1, is amended to read:

 

Subdivision 1.  Grants authorized.  Within the limits of available appropriations, the commissioner shall make grants to counties, cities, towns, and school districts to acquire, construct, or renovate public land and buildings and other public improvements of a capital nature for cooperative facilities to be owned and operated by the grantees.

 

Sec. 58.  STUDY OF DIVISION OF STATE DEPOSITORY ACCOUNTS AND GENERAL FUND REVENUE ACCOUNT. 

 

(a) The Carlson School of Management at the University of Minnesota is requested to study: 

 

(1) the feasibility of dividing the state's general fund revenue account among community financial institutions and transferring the state's major and minor accounts to community financial institutions in order to ensure that state money benefits Minnesota residents;

 

(2) the potential economic benefit or costs of transferring all major and minor accounts to community financial institutions; and

 

(3) the potential economic benefit or costs to governmental entities as defined by Minnesota Statutes, section 118A.01, subdivision 2, from an increase in their use of community financial institutions as defined in clause (1).

 

(b) The results of the study must be reported to the legislature by December 1, 2010.

 

For purposes of this section, "community financial institution" means a federally insured bank or credit union, chartered as a bank or credit union by the state of Minnesota or the United States, that is headquartered in Minnesota and has no more than $2,500,000,000 in assets.

 

Sec. 59.  GOVERNMENT EFFICIENCY AND TRANSPARENCY STUDIES. 

 

Subdivision 1.  Data center study.  (a) The commissioner of management and budget, in consultation with the state chief information officer, must study and report to the chairs and ranking minority members of the house and senate committees with jurisdiction over state government finance by January 15, 2011, on the feasibility and estimated costs of entering into a lease or lease-purchase agreement with a private nonprofit organization, involving a private sector developer, to provide a centralized data center for state agencies or to upgrade current facilities for purposes of data center consolidation.  The report must include a potential schedule for consolidation of existing state agency data centers, and an estimate of any savings, increased efficiencies, or performance improvements that would be achieved through this consolidation.


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(b) In conducting the study required under paragraph (a), the commissioner shall consult with representatives of higher education and local government units to determine the feasibility and desirability of creating a shared service contract for a data center.

 

(c) If the commissioner of management and budget and chief information officer conclude that entering into an agreement described in paragraph (a) is cost-beneficial, the commissioner may enter into such an agreement notwithstanding any law to the contrary.

 

Subd. 2.  Transparency standards.  By January 15, 2011, the chief information officer shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over the Office of Enterprise Technology regarding the development of the standards to enhance public access to data required under Minnesota Statutes, section 16E.05, subdivision 4.  The report must describe the process for development of the standards, including the opportunity provided for public comment, and specify the components of the standards that have been implemented, including a description of the level of public use of the new opportunities for data access under the standards.

 

Sec. 60.  REQUEST FOR PROPOSALS. 

 

(a) The commissioner of revenue shall issue a request for proposals for a contract to implement a system of tax analytics and business intelligence tools to enhance the state's tax collection process and revenues by improving the means of identifying candidates for audit and collection activities and prioritizing those activities to provide the highest returns on auditors' and collection agents' time.  The request for proposals must require that the system recommended and implemented by the contractor:

 

(1) leverage the Department of Revenue's existing data and other available data sources to build models that more effectively and efficiently identify accounts for audit review and collections;

 

(2) leverage advanced analytical techniques and technology such as pattern detection, predictive modeling, clustering, outlier detection, and link analysis to identify suspect accounts for audit review and collections;

 

(3) leverage a variety of approaches and analytical techniques to rank accounts and improve the success rate and the return on investment of department employees engaged in audit activities;

 

(4) leverage technology to make the audit process more sustainable and stable, even with turnover of department auditing staff;

 

(5) provide optimization capabilities to more effectively prioritize collections and increase the efficiency of employees engaged in collections activities; and

 

(6) incorporate mechanisms to decrease wrongful auditing and reduce interference with Minnesota taxpayers who are fully complying with the laws.

 

(b) Based on acceptable responses to the request for proposals, the commissioner shall enter into a contract for the services specified in paragraph (a) by July 1, 2012.  The contract must incorporate a performance-based vendor financing option whereby the vendor shares in the risk of the project's success.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.


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Sec. 61.  COMMISSION ON SERVICE INNOVATION. 

 

The governor shall appoint a Commission on Service Innovation to produce a strategic plan to reengineer the delivery of state and local government services, including the realignment of service delivery by region and proximity, the use of new technologies, shared facilities, and other means of improving efficiency.  The plan shall also provide a process to review and modify recommendations at regular intervals in the future based on specific results measured at regular intervals.  The plan shall also include any proposed legislation necessary to implement the commission's recommendations.

 

Sec. 62.  COST RECOVERY. 

 

During the biennium ending June 30, 2011, the chief information officer of the Office of Enterprise Technology may bill executive branch state agencies and offices for any increased costs the office incurs in implementing amendments to Minnesota Statutes, chapter 16E, in this act.  Amounts received by the office under this section are appropriated to the office for purposes of implementing Minnesota Statutes, chapter 16E, in the manner specified in this act.

 

Sec. 63.  BUSINESS INTELLIGENCE AND INFORMATION ANALYTICS. 

 

The Legislative Coordinating Commission must ensure that the house of representatives and the senate have improved ability to access and analyze public data contained in executive branch accounting, procurement, and budget systems.  The commission must issue a request for information or a request for proposals for the legislature to obtain business intelligence and information analytics software or software services.

 

Sec. 64.  PREDESIGN. 

 

Minnesota Statutes, section 16B.335, subdivision 3, does not apply to projects under Laws 2010, chapter 189, section 19, subdivision 4.

 

Sec. 65.  APPROPRIATIONS; ASSISTIVE VOTING EQUIPMENT AND VOTE-COUNTING EQUIPMENT. 

 

Subdivision 1.  Operating grants.  $300,000 is appropriated in fiscal year 2010 from the Help America Vote Act account to the secretary of state for grants to counties to defray operating costs of the assistive voting equipment and vote-counting equipment in each polling place.  This appropriation is available until spent.  Grants of up to $300 per polling place may be made until this appropriation is exhausted.  If the grant requests exceed the appropriation available, the secretary of state shall prorate the grant amounts to each eligible county to match the amount available.

 

Subd. 2.  Grant application.  To receive a grant under this subdivision, a county must apply to the secretary of state on forms prescribed by the secretary of state that set forth how the grant money will be spent.  Grant applications for operating costs for the 2010 elections must be received by the secretary of state by August 1, 2010.  Grant awards must be made to the counties by December 1, 2010.  If funds remain from this appropriation, the secretary may also make grants available for the 2012 election, with grant applications due by March 1, 2012, and grants made to counties by June 30, 2012.

 

Subd. 3.  Eligibility.  To be eligible to apply for a grant under this section, a county must have fewer than 50,000 registered voters as of January 1, 2010, and must have less than $300 per polling place that was used in the 2008 general election as a balance, including any interest earned on the account, in its Help America Vote Act account from funds distributed to it in 2005.


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Subd. 4.  Report.  Each county receiving a grant under this section must include the expenditures it has made on the appropriate Help America Vote Act reports submitted to the secretary of state.  If a county does not use the funds it has received under this section by June 30, 2013, it must return the funds to the secretary of state.  In addition to the report required by this section, each county receiving a grant under this act must maintain financial records for each grant sufficient to satisfy federal audit standards and must transmit those records to the secretary of state upon request of the secretary of state.  The secretary of state must report by January 15, 2011, and January 15, 2013, to the chairs and ranking minority members of the house of representatives and senate funding divisions with jurisdiction over the Office of the Secretary of State on the amount of grants made to each county receiving a grant under this section in the prior calendar year.

 

Subd. 5.  Operating costs.  "Operating costs" include actual county and municipal costs for hardware maintenance, election day technical support, software licensing, system programming, voting system testing, training of county or municipal staff in the use of voting equipment, and transportation of and storage of the voting equipment.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 66.  APPROPRIATIONS; OPTICAL SCAN EQUIPMENT. 

 

Subdivision 1.  Optical scan voting equipment grants.  $2,100,000 is appropriated in fiscal year 2010 from the Help America Vote Act account to the secretary of state for grants to counties to purchase optical scan voting equipment.  This appropriation is available until spent.  If the grant requests exceed the appropriation available, the secretary of state shall prorate the grant amounts to each eligible county to match the amount available.

 

Subd. 2.  Grant application.  To receive a grant under this section, a county must apply to the secretary of state on forms prescribed by the secretary of state that set forth how the grant money will be spent.  Applications for grants under this section must be submitted to the secretary of state by December 1, 2010, and be for purchases made prior to March 31, 2014.  Any funds granted to a county and not spent by June 30, 2014, must be returned to the secretary of state and the Help America Vote Act account.

 

Subd. 3.  Eligibility.  A county is eligible to apply for a grant of up to $4,000 per precinct to replace precinct-based optical scan vote counters if the vote counter was purchased prior to December 31, 2002, and the county received no federal or state funds to defray the cost of that purchase.  Counties must agree to provide a 50 percent match for any state and federal funds granted through this grant application.

 

Subd. 4.  Report.  Each county receiving a grant under this section must include the expenditures it has made on the appropriate Help America Vote Act reports submitted to the secretary of state.  If a county does not use the funds it has received under this section by June 30, 2014, it must return the funds to the secretary of state.  In addition to the report required by this section, each county receiving a grant under this act must maintain financial records for each grant sufficient to satisfy federal audit standards and must transmit those records to the secretary of state upon request of the secretary of state.  The secretary of state must report by January 15 each year through 2014 to the chairs and ranking minority members of the house of representatives and senate funding divisions with jurisdiction over the Office of the Secretary of State on the amount of grants made to each county receiving a grant under this section in the prior calendar year.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 67.  REPEALER. 

 

(a) Laws 2005, chapter 162, section 34, subdivision 2, as amended by Laws 2009, chapter 101, article 2, section 95, is repealed.


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(b) Minnesota Statutes 2009 Supplement, section 645.44, subdivision 19, is repealed.

 

(c) Minnesota Statutes 2008, section 211B.15, subdivision 12, is repealed.

 

Sec. 68.  EFFECTIVE DATE. 

 

Section 23 is effective July 1, 2010, and applies to grant agreements entered into and to appropriations received after that date.  The repeal of Minnesota Statutes, section 211B.15, subdivision 12, is effective the day following final enactment.

 

ARTICLE 2

 

STRATEGIC PLAN

 

Section 1.  STRATEGIC PLAN REPORT. 

 

By January 15, 2011, the Minnesota Innovation and Research Council shall report to the governor and the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over state government policy and finance with a strategic plan containing findings and recommendations to improve state and local government delivery of public services.  The strategic plan must specify:

 

(1) how to enhance the public involvement and input as the public uses state and local government services and public schools;

 

(2) how technology can be leveraged to reduce costs and enhance quality;

 

(3) how service innovation will increase value or results per dollar spent; and

 

(4) the design for a platform that will facilitate high-quality innovation and evaluate state and local government structural redesign in the future.

 

The strategic plan shall also provide a process to review and modify recommendations at regular intervals in the future based on specific results measured at regular intervals.

 

The strategic plan shall also include any proposed legislation necessary to implement the council's recommendations.

 

ARTICLE 3

 

MINNESOTA INNOVATION AND RESEARCH COUNCIL

 

Section 1.  Minnesota Statutes 2008, section 3.971, is amended by adding a subdivision to read:

 

Subd. 9.  Recommendations to the Minnesota Innovation and Research Council.  The legislative auditor may make recommendations to the Minnesota Innovation and Research Council established under section 465.7902 that will assist the council in accomplishing its duties.

 

Sec. 2.  [465.7901] DEFINITIONS. 

 

Subdivision 1.  Agency.  "Agency" means a department, agency, board, or other instrumentality of state government that has jurisdiction over an administrative rule or law from which a waiver is sought under section 465.7903.  If no specific agency has jurisdiction over such a law, agency refers to the attorney general.


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Subd. 2.  Council.  "Council" means the Minnesota Innovation and Research Council established by section 465.7902.

 

Subd. 3.  Local government unit.  "Local government unit" means a county, home rule charter or statutory city, school district, town, or special taxing district.

 

Subd. 4.  Metropolitan agency.  "Metropolitan agency" has the meaning given in section 473.121, subdivision 5a.

 

Subd. 5.  Metropolitan area.  "Metropolitan area" has the meaning given in section 473.121, subdivision 2.

 

Subd. 6.  Metropolitan Council.  "Metropolitan Council" means the Metropolitan Council established by section 473.123.

 

Subd. 7.  Scope.  As used in sections 465.7901 to 465.7907 and 465.805 to 465.808, the terms defined in this section have the meanings given them.

 

Sec. 3.  [465.7902] MINNESOTA INNOVATION AND RESEARCH COUNCIL. 

 

Subdivision 1.  Membership.  The Minnesota Innovation and Research Council consists of 15 members, appointed as follows:

 

(1) two members of the senate, appointed by the Subcommittee on Committees of the Senate Committee on Rules and Administration, one member of the majority caucus and one member of the largest minority caucus;

 

(2) two members of the house of representatives, appointed by the speaker of the house, one member of the majority caucus and one member of the largest minority caucus;

 

(3) the commissioner of management and budget;

 

(4) the commissioner of administration;

 

(5) the state chief information officer;

 

(6) an administrative law judge appointed by the chief administrative law judge;

 

(7) the state auditor;

 

(8) two members with a background in academic research concerning system redesign and delivery, including one member appointed by the chancellor of the Minnesota State Colleges and Universities and one member appointed by the president of the University of Minnesota;

 

(9) one member with experience in the leadership of nonprofit organizations, appointed by the Minnesota Council of Nonprofits;

 

(10) one member with experience in foundation leadership appointed by the Minnesota Council on Foundations;

 

(11) one member with experience as a leader of a for-profit corporation, appointed by the Minnesota Chamber of Commerce; and

 

(12) one member representing public employees appointed by the American Federation of State, County and Municipal Employees.


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All members must have experience or interest in the work of system redesign or public sector innovation.  The legislative members serve as nonvoting members.  Only members designated in clauses (3) to (7) may vote on proposed rule or law waivers under section 465.7903.  A commissioner serving on the council may designate an employee from the commissioner's agency to serve as the commissioner's designee.  A person registered as a lobbyist under chapter 10A may not be a member of the council.

 

Subd. 2.  Duties of council.  The council shall:

 

(1) accept applications from local government units and nonprofit organizations for waivers of administrative rules and temporary, limited exemptions from enforcement of procedural requirements in state law as provided in section 465.7903, and determine whether to approve, modify, or reject the application;

 

(2) accept applications for grants to local government units and related organizations proposing to design models or plans for innovative service delivery and management as provided in section 465.7905, and determine whether to approve, modify, or reject the application;

 

(3) accept applications from eligible local government units for service-sharing grants as provided in section 465.7905, and determine whether to approve, modify, or reject the application;

 

(4) make recommendations to the legislature for the authorization of pilot projects for the implementation of innovative service delivery activities that require statutory authorization;

 

(5) make recommendations to the legislature regarding the elimination of state mandates that inhibit local government efficiency, innovation, and cooperation by prescribing specific processes for achieving a desired outcome;

 

(6) investigate and review the role of unfunded state mandates in intergovernmental relations and assess their impact on state and local government objectives and responsibilities;

 

(7) make recommendations to the governor and the legislature regarding:

 

(i) allowing flexibility for local units of government in complying with specific unfunded state mandates for which terms of compliance are unnecessarily rigid or complex;

 

(ii) reconciling any two or more unfunded state mandates that impose contradictory or inconsistent requirements;

 

(iii) terminating unfunded state mandates that are duplicative, obsolete, or lacking in practical utility;

 

(iv) suspending, on a temporary basis, unfunded state mandates that are not vital to public health and safety and that compound the fiscal difficulties of local units of government, including recommendations for initiating the suspensions;

 

(v) consolidating or simplifying unfunded state mandates or the planning or reporting requirements of the mandates, in order to reduce duplication and facilitate compliance by local units of government with those mandates; and

 

(vi) establishing common state definitions or standards to be used by local units of government in complying with unfunded state mandates that use different definitions or standards for the same terms or principles;

 

(8) identify relevant unfunded state mandates;


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(9) facilitate proposals for grants made by eligible applicants; and

 

(10) make recommendations on topics to the Legislative Audit Commission for program evaluations that are likely to result in recommendations that will improve the cost-effective delivery of government services.

 

The duties imposed under clauses (6) to (10) must be performed to the extent possible given existing resources.  Each recommendation under clause (7) must, to the extent practicable, identify the specific unfunded state mandates to which the recommendation applies.  The commissioners or directors of state agencies responsible for the promulgation or enforcement of the unfunded mandates addressed in clauses (5) to (10) shall assist the council in carrying out the council's duties under this section.

 

Subd. 3.  Additional coordinating functions.  The council may also:

 

(1) serve as a clearinghouse for existing ideas and information from community leaders;

 

(2) provide a Web site where interested parties may share information and practices;

 

(3) receive recommendations from the legislative auditor concerning waivers and other initiatives within the council's jurisdiction;

 

(4) conduct research concerning innovation in service delivery and local government efficiency, innovation, and cooperation;

 

(5) facilitate regional dialogue concerning successful innovation and collaboration; and

 

(6) use its best efforts to maximize public involvement in its work, including the use of best practices in social media.

 

Subd. 4.  Staff.  The council shall hire an executive director who serves as the state's chief innovation officer.  The council may hire other staff or consultants as necessary to perform its duties.  The commissioner of administration must provide administrative support services to the council.

 

Subd. 5.  Terms, compensation, and removal.  Members serve at the pleasure of the appointing authority.  Compensation of members is governed by section 15.0575, unless otherwise provided.

 

Sec. 4.  [465.7903] RULE AND LAW WAIVER REQUESTS. 

 

Subdivision 1.  Generally.  (a) Except as provided in paragraph (b), a local government unit or a nonprofit organization may request the Minnesota Innovation and Research Council to grant a waiver from one or more administrative rules or a temporary, limited exemption from enforcement of state procedural laws governing delivery of services by the local government unit or nonprofit organization.  Two or more local government units may submit a joint application for a waiver or exemption under this section if they propose to cooperate in providing a service or program that is subject to the rule or law.  Before a local unit of government may submit an application to the council, the governing body of the local government unit must approve, in concept, the proposed waiver or exemption at a meeting required to be public under chapter 13D.  A waiver or exemption granted to a nonprofit organization under this section applies to services provided to all of the organization's clients.

 

(b) A school district that is granted a variance from rules of the commissioner of education under section 122A.163 need not apply to the council for a waiver of those rules under this section.  A school district may not seek a waiver of rules under this section if the commissioner of education has authority to grant a variance to the rules under section 122A.163.  This paragraph does not preclude a school district from being included in a cooperative effort with another local government unit under this section.


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Subd. 2.  Application.  (a) A local government unit or nonprofit organization requesting a waiver of a rule or exemption from enforcement of a law under this section shall present a written application to the council.  The application must include:

 

(1) identification of the service or program at issue;

 

(2) identification of the administrative rule or the law imposing a procedural requirement with respect to which the waiver or exemption is sought; and

 

(3) a description of the improved service outcome sought, including an explanation of the effect of the waiver or exemption in accomplishing that outcome.

 

(b) A local government unit submitting an application must provide a copy to the exclusive representative certified under section 179A.12 to represent employees who provide the service or program affected by the requested waiver or exemption.

 

Subd. 3.  Review process.  (a) Upon receipt of an application, the council shall commence review of the application, as provided in this subdivision.  The council shall dismiss an application if it finds that the application proposes a waiver of rules or exemption from enforcement of laws that would result in due process violations, violations of federal law or the state or federal constitution, or the loss of services to people who are entitled to them.  If the council does not dismiss an application, the council must publish notice in the State Register before it acts on the application.  The notice must list the name of the local government unit or nonprofit organization requesting the waiver or exemption, the service or program at issue, and the rule or law with respect to which the waiver of exemption is sought.

 

(b) The council shall determine whether a law from which an exemption for enforcement is sought is a procedural law, specifying how a local government unit or nonprofit organization is to achieve an outcome, rather than a substantive law prescribing the outcome or otherwise establishing policy.  For the purposes of this section, "procedural law" does not include a statutory notice requirement.  In making its determination, the council shall consider whether the law specifies such requirements as:

 

(1) who must deliver a service;

 

(2) where the service must be delivered;

 

(3) to whom and in what form reports regarding the service must be made; and

 

(4) how long or how often the service must be made available to a given recipient.

 

(c) If a member of the council also is a commissioner, a commissioner's designee, or the state auditor, or is employed by an agency with jurisdiction over a rule or law affected by an application, the member must not participate in the decision on the particular waiver or exemption.

 

(d) If the application is submitted by a local government unit or a nonprofit organization in the metropolitan area or the unit or nonprofit organization requests a waiver of a rule or temporary, limited exemptions from enforcement of a procedural law over which the Metropolitan Council or a metropolitan agency has jurisdiction, the council shall also transmit a copy of the application to the Metropolitan Council for review and comment.  The Metropolitan Council shall report its comments to the council within 60 days of the date the application was transmitted to the Metropolitan Council.  The Metropolitan Council may point out any resources or technical assistance it may be able to provide a local government unit or nonprofit organization submitting a request under this section.


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(e) Within 15 days after receipt of the application, the council shall transmit a copy of it to the commissioner of each agency having jurisdiction over a rule or law from which a waiver or exemption is sought.  The agency may mail a notice that it has received an application for a waiver or exemption to all persons who have registered with the agency under section 14.14, subdivision 1a, identifying the rule or law from which a waiver or exemption is requested.  If no agency has jurisdiction over the rule or law, the council shall transmit a copy of the application to the attorney general.  The agency shall inform the council of its agreement with or objection to and grounds for objection to the waiver or exemption request within 60 days of the date when the application was transmitted to it.  An agency's failure to respond under this paragraph is considered agreement to the waiver or exemption.  The council shall decide whether to grant a waiver or exemption at its next regularly scheduled meeting following its receipt of an agency's response or the end of the 60-day response period.  If consideration of an application is not concluded at that meeting, the matter may be carried over to the next meeting of the council.  Interested persons may submit written comments and requests to present oral comments to the council on the waiver or exemption request up to the time of its vote on the application.

 

(f) If the exclusive representative of the affected employees of the requesting local government unit objects to the waiver or exemption request, it may inform the council of the objection to and the grounds for the objection to the waiver or exemption request within 60 days of the receipt of the application.

 

Subd. 4.  Hearing.  If the agency or the exclusive representative does not agree with the waiver or exemption request, the council shall set a date for a hearing on the application.  The hearing must be conducted informally at a meeting of the council.  Persons representing the local government unit shall present their request for the waiver or exemption, and a representative from the agency shall explain the agency's objection to the waiver or exemption.  Members of the council may request additional information from either party.  The council may also request, either before or at the hearing, information or comments from representatives of business, labor, local governments, state agencies, consultants, and members of the public.  If a member of the public requests to present comments or information at the hearing, the council must permit the member of the public an opportunity to present the comments or information.  If necessary, the hearing may be continued at a subsequent council meeting.  A waiver or exemption requires a majority vote of the council members.  The council may modify the terms of the waiver or exemption request in arriving at the agreement required under subdivision 5.

 

Subd. 5.  Conditions of agreements.  (a) If the council grants a request for a waiver or exemption, the council and the entity making the request shall enter into an agreement providing for the delivery of the service or program that is the subject of the application.  The agreement must specify desired outcomes and the means of measurement by which the council will determine whether the outcomes specified in the agreement have been met.  The agreement must specify the duration of the waiver or exemption.  The duration of a waiver from an administrative rule may be for no less than two years and no more than four years, subject to renewal if both parties agree.  An exemption from enforcement of a law terminates ten days after adjournment of the regular legislative session held during the calendar year following the year when the exemption is granted, unless the legislature has acted to extend or make permanent the exemption.

 

(b) If the council grants a waiver or exemption, it must report the waiver or exemption to the legislature, including the chairs of the governmental operations and appropriate policy committees in the house of representatives and senate, and the governor within 30 days.

 

(c) The council may reconsider or renegotiate the agreement if the rule or law affected by the waiver or exemption is amended or repealed during the term of the original agreement.  A waiver of a rule under this section has the effect of a variance granted by an agency under section 14.055.  The recipient of an exemption from enforcement of a procedural requirement in state law under this section is exempt from that law for the duration of the exemption.  The council may require periodic reports from the recipient, or conduct investigations of the service or program.


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Subd. 6.  Enforcement.  If the council finds that the recipient of a waiver or an exemption has failed to comply with the terms of the agreement under subdivision 5, it may rescind the agreement.  After an agreement is rescinded, the recipient is subject to the rules and laws covered by the agreement.

 

Subd. 7.  Access to data.  If the recipient of a waiver or an exemption through a cooperative program under this section gains access to data that is classified as not public, the access to and use of the data for the recipient is governed by the same restrictions on access to and use of the data that apply to the unit that collected, created, received, or maintained the data.

 

Sec. 5.  [465.7904] WAIVERS OF STATE RULES; POLICIES. 

 

Subdivision 1.  Application.  A state agency may apply to the council for a waiver from:

 

(1) an administrative rule or policy adopted by the commissioner of management and budget that deals with the state personnel system;

 

(2) an administrative rule or policy of the commissioner of administration that deals with the state procurement system; or

 

(3) a policy of the commissioner of management and budget that deals with the state accounting system.

 

Two or more state agencies may submit a joint application.  A waiver application must identify the rule or policy at issue, and must describe the improved outcome sought through the waiver.

 

Subd. 2.  Review process.  (a) The council shall review all applications submitted under this section.  The council shall dismiss an application if it finds that the application proposes a waiver that would result in due process violations, violations of federal law or the state or federal constitution, or the loss of services to people who are entitled to them.  If a proposed waiver would violate the terms of a collective bargaining agreement effective under chapter 179A, the waiver is not effective without the consent of the exclusive representative that is a party to the agreement.  The council may approve a waiver only if the council determines that if the waiver is granted:  (1) services can be provided in a more efficient or effective manner; and (2) services related to human resources must be provided in a manner consistent with section 43A.01.  In the case of a waiver from a policy of the commissioner of management and budget, the council may approve the waiver only if it determines that services will be provided in a more efficient or effective manner and that state funds will be adequately accounted for and safeguarded in a manner that complies with generally accepted government accounting principles.

 

(b) Within 15 days of receipt of the application, the council shall send a copy of the application to:  (1) the agency whose rule or policy is involved; and (2) all exclusive representatives who represent employees of the agency requesting the waiver.  The agency whose rule or policy is involved may mail a copy of the application to all persons who have registered with the agency under section 14.14, subdivision 1a.

 

(c) The agency whose rule or policy is involved, or an exclusive representative, shall notify the council of its agreement with or objection to and grounds for objection to the waiver within 60 days of the date when the application was transmitted to the agency or the exclusive representative.  An agency's or exclusive representative's failure to respond under this paragraph is considered agreement to the waiver.

 

(d) If the agency or the exclusive representative objects to the waiver, the council shall schedule a meeting at which the agency requesting the waiver may present its case for the waiver and the objecting party may respond.  The council shall decide whether to grant a waiver at its next regularly scheduled meeting following its receipt of an agency's response, or the end of the 60-day response period, whichever occurs first.  If consideration of an application is not concluded at the meeting, the matter may be carried over to the next meeting of the council.  Interested persons may submit written comments to the council on the waiver request.


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(e) If the council grants a request for a waiver, the council and the agency requesting the waiver shall enter into an agreement relating to the outcomes desired as a result of the waiver and the means of measurement to determine whether those outcomes have been achieved with the waiver.  The agreement must specify the duration of the waiver, which must be for at least two years and not more than four years.  If the council determines that an agency that has received a waiver is failing to comply with the terms of the agreement, the council may rescind the agreement.

 

Subd. 3.  Participation.  If a waiver request involves a rule or policy adopted by an official specified in section 465.7902, subdivision 1, clauses (3) to (7), that official may not participate in the evaluation of that waiver request.

 

Sec. 6.  [465.7905] INNOVATION AND REDESIGN GRANTS. 

 

Subdivision 1.  Application.  One or more local units of government, an association of local governments, the Metropolitan Council, a local unit of government acting in conjunction with an organization or a state agency, an organization established by two or more local units of government under a joint powers agreement, or a not-for-profit organization may apply to the Minnesota Innovation and Research Council for a grant to be used to:  (1) develop models for service redesign; or (2) meet the start-up costs of providing shared services or functions.  Agreements solely to make joint purchases do not qualify for grants.  The application must specify a nonstate funding source for 25 percent of the total cost of the proposal.  The application to the council must state what other sources of funding have been considered by the local units of government to implement the project and explain why it is not possible to complete the project without assistance from the council.  The council may not award a grant if it determines that the local units of government could complete the project without council assistance or if it determines the applicant has not specified a nonstate funding source for 25 percent of the total cost.  A copy of the application must be provided by the units to the exclusive representatives certified under section 179A.12 to represent employees who provide the service or program affected by the application.

 

Subd. 2.  Proposals.  (a) Proposed models for service redesign may provide options to local governments, neighborhood or community organizations, other not-for-profit organizations, or individuals to redesign service delivery.  In awarding grants under this paragraph, the council must consider whether the proposal:

 

(1) expands consumer choices and opportunities;

 

(2) shifts government toward an expanded role as a purchaser, rather than a provider, of services;

 

(3) reduces administrative costs through statewide or regional contracting, or related administrative efficiencies;

 

(4) reduces administrative costs through the accumulation of multiple related services into a single contract with one provider, or related administrative efficiencies;

 

(5) fosters entrepreneurial leadership in the public sector; and

 

(6) increases value to the taxpayer or results per dollar spent.

 

(b) A proposal for a grant for shared services or functions must include plans to fully integrate a service or function provided by two or more local government units.  The proposal must include how value to the taxpayer or results per dollar spent will be impacted. 

 

Subd. 3.  Requirements.  A copy of the work product for which the grant was provided must be furnished to the council upon completion, and the council may disseminate it to other local units of government or interested groups.  If the council finds that the work was not completed or implemented according to the terms of the grant agreement, it may require the grantee to repay all or a portion of the grant.  The council shall award grants on the basis of each


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qualified applicant's score under the scoring system in section 465.7906.  The amount of a grant under subdivision 2, paragraph (a), may not exceed $250,000.  The amount of a grant under subdivision 2, paragraph (b), may not exceed $100,000.

 

Sec. 7.  [465.7906] SCORING SYSTEM. 

 

In deciding whether to award a grant under section 465.7905, the council shall use the following scoring system:

 

(1) Up to 15 points must be awarded to reflect the extent to which the application demonstrates creative thinking, careful planning, cooperation, involvement of the clients of the affected service, and commitment to persist through challenges.

 

(2) Up to 25 points must be awarded to reflect the extent to which the proposed project is likely to improve the quality of the service, increase value to the taxpayers or results per dollar spent, and to have benefits for other local governments.

 

(3) Up to 15 points must be awarded to reflect the extent to which the application's budget provides sufficient detail, maximizes the use of state funds, documents the need for financial assistance, commits to local financial support, and limits expenditures to essential activities.

 

(4) Up to 15 points must be awarded to reflect the extent to which the application reflects the statutory goal of the grant program.

 

(5) Up to 15 points must be awarded to reflect the merit of the proposed project and the extent to which it warrants the state's financial participation.

 

(6) Up to five points must be awarded to reflect the cost to benefit ratio projected for the proposed project.

 

(7) Up to five points must be awarded to reflect the number of government units participating in the proposal.

 

(8) Up to five points must be awarded to reflect the minimum length of time the application commits to implementation.

 

Sec. 8.  [465.7907] REPAYMENT OF GRANTS. 

 

Subdivision 1.  Repayment procedures.  Without regard to whether a grant recipient offered to repay the grant in its original application, as part of a grant awarded under section 465.7905, the council may require the grant recipient to repay all or part of the grant if the council determines the project funded by the grant resulted in an actual savings for the participating local units of government.  The grant agreement must specify how the savings are to be determined and the period of time over which the savings will be used to calculate a repayment requirement.  The repayment of grant money under this section must not exceed an amount equal to the total savings achieved through the implementation of the project.

 

Subd. 2.  Bonus points.  In addition to the points awarded to competitive grant applications under section 465.7906, the council shall award additional points to any applicant that projects a potential cost savings through the implementation of its project and offers to repay part or all of the grant under the formula in subdivision 1.

 

Subd. 3.  Use of repayment revenue.  All grant money repaid to the council under this section is appropriated to the council for additional grants authorized by section 465.7905.

 

Sec. 9.  [465.805] POLICY INNOVATION AND RESEARCH. 

 

Subdivision 1.  Research topics.  The council shall periodically select policy innovation topics suitable for review and analysis by a consortium of independent organizations.  Topics may include general or specific functions of state government.  The council shall give primary consideration to areas of concern where a comprehensive


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review and analysis of available research is likely to yield recommendations for policy changes that will provide significant efficiencies and improvements in the operation of state government and an increase in value to the taxpayer.  Legislators and legislative committees may provide the council with recommendations for topics.  The council shall make the final determination regarding the selection of topics under this section.

 

Subd. 2.  Request for proposal process.  (a) After making the determination of a research topic under subdivision 1, the council shall prepare a request for proposal relating to the topic that specifies:

 

(1) the precise topic and scope of the research required for the report to the commission;

 

(2) the deadlines for the response to the request for proposal and for the subsequent report; and

 

(3) any other restrictions or guidelines required by the commission.

 

The council shall make the request for proposal publicly available and must review responses from any interested party.  A group of individuals or organizations may submit a response.  The council may encourage the development of a collaborative design lab containing a cross-section of researchers and public sector designers from various nonprofits, businesses, foundations, and education institutions to respond to the request for proposal.

 

(b) After the deadline for submission of responses has expired, the council must hold a hearing to consider all submissions.  The council shall consider the following factors in selecting a response to the request for proposal:

 

(1) the experience and training of individuals and organizations who will prepare the report to the commission;

 

(2) the reliability and credibility of individuals and organizations who will prepare the report;

 

(3) the proposed method of research; and

 

(4) the resources available for the preparation of the report.

 

(c) After consideration and hearing of the responses to the request for proposal, the council may:

 

(1) select a submission;

 

(2) revise the original request for proposal and extend the deadline for responses; or

 

(3) terminate the request for proposal process for the selected topic.

 

The chief innovation officer shall periodically communicate with the researchers to make sure they are focused on answering the questions outlined in the request for proposals.

 

Subd. 3.  Reports to council.  The council shall hold a hearing to receive a report prepared under this section and shall ensure that the governor and the relevant committees in the legislature are provided with notice of the report and an opportunity to review the report, including an opportunity for additional hearings.

 

Sec. 10.  [465.808] RECEIPTS; APPROPRIATION. 

 

(a) The council may charge a fee for the use of services provided by the council's staff.  The receipts from fees charged under this section are deposited in a special revenue account and appropriated to the council for services provided under sections 465.7901 to 465.808.


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(b) The council may accept gifts and grants.  Money received under this paragraph is deposited in a special revenue account and appropriated to the council for services provided under sections 465.7901 to 465.808.

 

Sec. 11.  [465.809] GUARANTEEING INCREASED VALUE TO THE TAXPAYER. 

 

Subdivision 1.  Report.  The council shall report by January 15 each year to the governor and appropriate committees of the house of representatives and senate on its activities.  The report shall include the amount of the council's net spending, the amount of savings and the increased outcomes to the taxpayer that was identified by the council, and the actual documented savings to state and local governments.  Entities receiving grants or waivers from the council must document and verify savings to the taxpayer from the previous year's budgets.

 

Subd. 2.  Savings and increased value.  The council must make every effort to obtain $3 in savings and show increased value to the taxpayer for each net state dollar spent by the council.

 

Subd. 3.  Innovative practices.  The council shall promote and drive innovative practices and must make annual recommendations to the legislature.  One or all of these recommendations may be in partnership with individuals, foundations, nonprofits, or businesses.  The council may make endorsements of proposals of individuals, foundations, nonprofits, or businesses when making recommendations.  The council must make annual recommendations to:

 

(1) recommend at least $20 in savings and show increased outcomes to the taxpayer for each net state dollar spent by the council.  These savings may be spread out over various budget items;

 

(2) recommend policy changes that will quantifiably improve desired outcome attainment to the taxpayer as compared to dollars spent.  This shall not be limited to efficiency but may also include developing new approaches to achieve desired outcomes;

 

(3) highlight existing innovative practices or partnerships in the state; and

 

(4) recommend innovative models, which may include state and local government structural redesign, from across the country to the legislature; highlight innovative practices from past or contemporary reports; recommend evidence-based service delivery methods for this state; or recommend theory-based working models of approaches to policy.

 

Sec. 12.  APPROPRIATIONS. 

 

$50,000 is appropriated from the general fund for the fiscal year ending June 30, 2011, to the Minnesota Innovation and Research Council for the following purposes:

 

(1) operation and administration of the council;

 

(2) grants for models for service redesign;

 

(3) grants for shared services and functions;

 

(4) policy innovation and research; and

 

(5) the strategic plan report under article 2, section 1.

 

The appropriations in this section are contingent on receiving a dollar-for-dollar match from private sources.  This is a onetime appropriation.


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Sec. 13.  REPEALER. 

 

Minnesota Statutes 2008, section 6.80, is repealed."

 

Delete the title and insert:

 

"A bill for an act relating to government operations; setting date for the legislature to meet in even years; providing for monitoring management of permanent school fund lands; increasing the number of members on the Legislative Commission on Pensions and Retirement; defining certain powers of the Council on Black Minnesotans; allowing the legislative auditor to recover costs for certain financial audits; providing mapped data on expenditures; increasing agency deposit receipts; setting conditions for recipients of state grants and appropriations; establishing conditions for disposal of state-owned buildings; establishing requirements for financing agreements for state projects; requiring conditions for fleet management activities; adding duties of the chief information officer; allowing expenditures associated with the combined charities campaign; modifying provisions for groundwater quality monitoring and resource recovery; modifying secretary of state records provisions; enhancing the state's tax collection process; creating Commission on Service Innovation; modifying provisions for campaign finance; requiring a strategic plan to improve state and local government delivery of services; establishing the Minnesota Innovation and Research Council; requiring certain studies; appropriating money; amending Minnesota Statutes 2008, sections 3.303, by adding a subdivision; 3.85, subdivision 3; 3.9225, subdivision 5; 3.971, by adding a subdivision; 10A.01, subdivision 18, by adding subdivisions; 10A.12, by adding a subdivision; 10A.20, subdivisions 2, 4, 12; 10A.27, by adding subdivisions; 16A.125, subdivision 5; 16A.275; 16B.24, subdivision 3; 16B.322, subdivisions 4, 5; 16C.055, subdivision 2; 16E.04, subdivision 2; 16E.05, by adding a subdivision; 43A.50, subdivision 2; 79.34, subdivision 1; 103F.755; 103H.175, as amended; 115A.15, subdivisions 4, 9, 10; 127A.30, subdivision 2; 211B.01, subdivision 3; 211B.04; 211B.15, subdivisions 2, 3; 216B.16, by adding a subdivision; 307.08, subdivision 5; 318.02, subdivision 1; 336.9-531; 336A.08, subdivisions 1, 4; 336A.14; 557.01; Minnesota Statutes 2009 Supplement, sections 16B.322, subdivisions 4a, 4b, 4c; 16E.02, subdivision 1; 365.46, subdivision 2; 379.05; Laws 2010, chapter 189, section 35, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 3; 5; 10; 10A; 16A; 16B; 465; repealing Minnesota Statutes 2008, sections 6.80; 211B.15, subdivision 12; Minnesota Statutes 2009 Supplement, section 645.44, subdivision 19; Laws 2005, chapter 162, section 34, subdivision 2, as amended."

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

 

      The report was adopted.

 

 

SECOND READING OF HOUSE BILLS

 

 

      H. F. No. 2866 was read for the second time.

 

 

FISCAL CALENDAR

 

 

      Pursuant to rule 1.22, Solberg requested immediate consideration of S. F. No. 3019.


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      S. F. No. 3019, A bill for an act relating to human services; authorizing a rate increase for publicly owned nursing facilities; changing the all-inclusive care for the elderly program (PACE); requiring a local share of nonfederal medical assistance costs; appropriating money; amending Minnesota Statutes 2008, sections 256B.19, by adding a subdivision; 256B.441, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 23.

 

 

      The bill was read for the third time and placed upon its final passage.

 

      The question was taken on the passage of the bill and the roll was called.  There were 94 yeas and 38 nays as follows:

 

      Those who voted in the affirmative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Demmer

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Gunther

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kiffmeyer

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McFarlane

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Brod

Buesgens

Davids

Dean

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Hackbarth

Hamilton

Holberg

Hoppe

Kelly

Kohls

Lanning

Loon

Mack

Magnus

McNamara

Murdock

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Torkelson

Urdahl

Westrom

Zellers


 

 

      The bill was passed and its title agreed to.

 

 

      Pursuant to rule 1.22, Solberg requested immediate consideration of S. F. No. 2885.

 

 

      S. F. No. 2885 was reported to the House.

 

 

Brod moved to amend S. F. No. 2885, the first engrossment, as follows:

 

Page 1, delete lines 12 and 13 and insert "and applies to testimony offered and opinions or reports prepared for cases filed after that date."


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Page 2, delete lines 9 and 10 and insert "and applies to testimony offered and opinions or reports prepared for cases filed after that date."

 

Page 4, delete lines 21 and 22 and insert "and applies to testimony offered and opinions or reports prepared for cases filed after that date."

 

 

      The motion did not prevail and the amendment was not adopted.

 

 

      S. F. No. 2885, A bill for an act relating to taxation; specifying duties of assessors; amending Minnesota Statutes 2008, sections 82B.035, subdivision 2; 270.41, subdivision 5; 273.061, subdivisions 7, 8.

 

 

      The bill was read for the third time and placed upon its final passage.

 

      The question was taken on the passage of the bill and the roll was called.  There were 110 yeas and 24 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, P.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Demmer

Dill

Dittrich

Doepke

Doty

Downey

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Anderson, S.

Brod

Buesgens

Dean

Dettmer

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Gunther

Hackbarth

Holberg

Hoppe

Kiffmeyer

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Zellers


 

 

      The bill was passed and its title agreed to.

 

 

REPORT FROM THE COMMITTEE ON RULES AND

LEGISLATIVE ADMINISTRATION

 

      Sertich from the Committee on Rules and Legislative Administration, pursuant to rule 1.21, designated the following bills to be placed on the Supplemental Calendar for the Day for Tuesday, May 11, 2010:

 

      S. F. Nos. 3126, 3318, 1659 and 560; H. F. No. 2562; and S. F. No. 2839.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12416


 

      Speaker pro tempore Juhnke called Hortman to the Chair.

 

 

CALENDAR FOR THE DAY

 

 

      S. F. No. 341 was reported to the House.

 

 

Murphy, E., and Simon moved to amend S. F. No. 341, the second engrossment, as follows:

 

Page 2, line 22, after "are" insert "two"

 

Page 4, line 3, after "means" insert "two"

 

 

      The motion prevailed and the amendment was adopted.

 

 

      S. F. No. 341, as amended, was read for the third time.

 

 

MOTION TO LAY ON THE TABLE

 

      Brod moved that S. F. No. 341, as amended, be laid on the table.

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the Brod motion and the roll was called.  There were 50 yeas and 83 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Fritz

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Howes

Kath

Kelly

Kiffmeyer

Kohls

Lanning

Loon

Mack

Magnus

McFarlane

McNamara

Murdock

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Sterner

Torkelson

Urdahl

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12417


 

Newton

Norton

Obermueller

Olin

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail.

 

 

CALL OF THE HOUSE

 

      On the motion of Dean and on the demand of 10 members, a call of the House was ordered.  The following members answered to their names:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Atkins

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hansen

Hausman

Haws

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler


 

      Morrow moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees.  The motion prevailed and it was so ordered.

 

 

      S. F. No. 341, A bill for an act relating to health; modifying provisions for disposition of a deceased person; amending Minnesota Statutes 2008, sections 3.736, subdivision 6; 149A.80, subdivision 2; 466.05, subdivision 2; 573.02, subdivisions 1, 3.

 

 

      The bill, as amended, was placed upon its final passage.

 

      The question was taken on the passage of the bill and the roll was called.

 

      Morrow moved that those not voting be excused from voting.  The motion prevailed.

 

      There were 78 yeas and 55 nays as follows:

 

      Those who voted in the affirmative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davnie

Dittrich

Falk

Faust

Fritz

Gardner

Greiling


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12418


 

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Johnson

Kahn

Kalin

Kath

Kelly

Knuth

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Paymar

Persell

Peterson

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Cornish

Davids

Dean

Demmer

Dettmer

Dill

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Garofalo

Gottwalt

Gunther

Hackbarth

Holberg

Hoppe

Howes

Jackson

Juhnke

Kiffmeyer

Koenen

Kohls

Lanning

Loon

Mack

Magnus

McFarlane

McNamara

Murdock

Nornes

Olin

Otremba

Pelowski

Peppin

Poppe

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

      The bill was passed, as amended, and its title agreed to.

 

 

CALL OF THE HOUSE LIFTED

 

      Morrow moved that the call of the House be lifted.  The motion prevailed and it was so ordered.

 

 

FISCAL CALENDAR

 

 

      Pursuant to rule 1.22, Solberg requested immediate consideration of S. F. No. 2702.

 

 

      S. F. No. 2702 was reported to the House.

 

 

      Ruud moved to amend S. F. No. 2702, the third engrossment, as follows:

 

      Pages 1 and 2, delete section 1

 

 

      The motion prevailed and the amendment was adopted.

 

 

Kelly moved to amend S. F. No. 2702, the third engrossment, as amended, as follows:

 

Page 5, after line 12, insert:


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12419


 

"Sec. 3.  [144.616] HOSPITAL TRANSFER; LIABILITY. 

 

Subdivision 1.  Contract for transfer.  A birth center licensed under section 144.615 must contract with a licensed acute care hospital for the hospital's receipt of patients from the birth center in the case of emergency complications of labor or delivery.  Under this subdivision, the birth center must contract with a hospital that is capable of providing obstetrical and neonatal services and receiving patients from the birth center within 15 minutes of diagnosis of an emergency.

 

Subd. 2.  Limited liability for receiving hospital.  A hospital licensed under section 144.55 that receives a patient transferred from a birth center due to complications of labor or delivery is not liable for acts or omissions that occurred at the birth center prior to the transfer of the patient to the hospital. 

 

Subd. 3.  Limited liability for receiving physician.  A licensed physician who receives a patient transferred to a hospital from a birth center due to complications of labor or delivery is not liable for acts or omissions that occurred at the birth center prior to the transfer of the patient to the physician's care and total noneconomic compensation shall be capped at $300,000."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion did not prevail and the amendment was not adopted.

 

 

Mack and Dean moved to amend S. F. No. 2702, the third engrossment, as amended, as follows:

 

Page 4, after line 23, insert:

 

"(c) Birth centers licensed under this section must provide disclosure of service limitations to patients, including, but not limited to, the inability to administer regional or general anesthesia, including a spinal block for pain, and the inability to provide emergency cesarean section surgery in the case of fetal distress, which could result in long-term disability or death for the mother or child."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the Mack and Dean amendment and the roll was called.  There were 45 yeas and 89 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, S.

Brod

Buesgens

Clark

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Juhnke

Kath

Kelly

Kiffmeyer

Kohls

Loon

Mack

Magnus


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12420


 

McFarlane

Murdock

Nornes

Obermueller

Olin

Pelowski

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Torkelson

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Abeler

Anderson, P.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Kahn

Kalin

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McNamara

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Otremba

Paymar

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Urdahl

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail and the amendment was not adopted.

 

 

      S. F. No. 2702, A bill for an act relating to health; establishing licensure for birth centers; appropriating money; amending Minnesota Statutes 2008, sections 62Q.19, subdivision 1; 144.651, subdivision 2; 144A.51, subdivision 5; 256B.0625, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 144.

 

 

      The bill was read for the third time, as amended, and placed upon its final passage.

 

      The question was taken on the passage of the bill and the roll was called.  There were 126 yeas and 8 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Demmer

Dettmer

Dill

Dittrich

Doty

Downey

Eastlund

Eken

Falk

Faust

Fritz

Gardner

Gottwalt

Greiling

Gunther

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12421


 

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Winkler

Zellers

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Buesgens

Dean

Doepke

Drazkowski

Emmer

Garofalo

Hackbarth

Westrom


 

 

      The bill was passed, as amended, and its title agreed to.

 

 

      Speaker pro tempore Hortman called Juhnke to the Chair.

 

 

      The following Conference Committee Report was received:

 

 

CONFERENCE COMMITTEE REPORT ON H. F. NO. 3263

 

A bill for an act relating to traffic regulations; modifying provisions governing speed limits in highway work zones, operating vehicles on multilane roads, and surcharges on traffic citations; creating traffic safety education account; amending Minnesota Statutes 2008, sections 169.14, subdivision 5d; 169.18, subdivisions 7, 10, by adding a subdivision; 171.12, subdivision 6; 171.13, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 357.021, subdivision 6.

 

May 7, 2010

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

The Honorable James P. Metzen

President of the Senate

 

We, the undersigned conferees for H. F. No. 3263 report that we have agreed upon the items in dispute and recommend as follows:

 

That the Senate recede from its amendments and that H. F. No. 3263 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2008, section 169.14, subdivision 5d, is amended to read:

 

Subd. 5d.  Speed zoning in work zone; surcharge.  (a) The commissioner, on trunk highways and temporary trunk highways, and local authorities, on streets and highways under their jurisdiction, may authorize the use of reduced maximum speed limits in highway work zones.  The commissioner or local authority is not required to conduct an engineering and traffic investigation before authorizing a reduced speed limit in a highway work zone.

 

(b) The minimum highway work zone speed limit is 20 miles per hour.  The work zone speed limit must not reduce the established speed limit on the affected street or highway by more than 15 miles per hour, except that the highway work zone speed limit must not exceed 40 miles per hour.  The commissioner or local authority shall post


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12422


 

the limits of the work zone.  Highway work zone speed limits are effective on erection of appropriate regulatory speed limit signs.  The signs must be removed or covered when they are not required.  A speed greater than the posted highway work zone speed limit is unlawful.

 

(c) Notwithstanding paragraph (b), on divided highways the commissioner or local authority may establish a highway work zone speed limit that does not exceed 55 miles per hour.

 

(d) Notwithstanding paragraph (b), on two-lane highways having one lane for each direction of travel with a posted speed limit of 60 miles per hour or greater, the commissioner or local authority may establish a highway work zone speed limit that does not exceed 40 miles per hour.

 

(e) For purposes of this subdivision, "highway work zone" means a segment of highway or street where a road authority or its agent is constructing, reconstructing, or maintaining the physical structure of the roadway, its shoulders, or features adjacent to the roadway, including underground and overhead utilities and highway appurtenances, when workers are present.

 

(e) (f) Notwithstanding section 609.0331 or 609.101 or other law to the contrary, a person who violates a speed limit established under paragraph (b) or (c) this subdivision, or who violates any other provision of this section while in a highway work zone, is assessed an additional surcharge equal to the amount of the fine imposed for the speed violation, but not less than $25.

 

Sec. 2.  Minnesota Statutes 2008, section 169.685, subdivision 6, is amended to read:

 

Subd. 6.  Exceptions.  (a) This section does not apply to:

 

(1) a person transporting a child in an emergency medical vehicle while in the performance of official duties and when the physical or medical needs of the child make the use of a child passenger restraint system unreasonable or when a child passenger restraint system is not available;

 

(2) a peace officer transporting a child while in the performance of official duties and when a child passenger restraint system is not available, provided that a seat belt must be substituted; and

 

(3) a person while operating a motor vehicle for hire, including a taxi, airport limousine, and bus, but excluding a rented, leased, or borrowed motor vehicle;

 

(4) a person while operating a school bus; and

 

(5) a person while operating a type III vehicle described in section 169.011, subdivision 71, paragraph (h), if the vehicle meets the seating and crash protection requirements of Federal Motor Vehicle Safety Standard 222, Code of Federal Regulations, title 49, part 571.

 

(b) A child passenger restraint system is not required for a child who cannot, in the judgment of a licensed physician, be safely transported in a child passenger restraint system because of a medical condition, body size, or physical disability.  A motor vehicle operator claiming exemption for a child under this paragraph must possess a typewritten statement from the physician stating that the child cannot be safely transported in a child passenger restraint system.  The statement must give the name and birth date of the child, be dated within the previous six months, and be made on the physician's letterhead or contain the physician's name, address, and telephone number.  A person charged with violating subdivision 5 may not be convicted if the person produces the physician's statement in court or in the office of the arresting officer.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12423


 

(c) A person offering a motor vehicle for rent or lease shall provide a child passenger restraint device to a customer renting or leasing the motor vehicle who requests the device.  A reasonable rent or fee may be charged for use of the child passenger restraint device.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 3.  Minnesota Statutes 2008, section 171.13, is amended by adding a subdivision to read:

 

Subd. 1k.  Driver's manual; driving in right lane.  The commissioner shall include in each edition of the driver's manual published by the department after August 1, 2010, instructions relating to circumstances under which a driver of a motor vehicle should drive in the right-hand lane of a highway that is divided into more than one lane in the same direction of travel."

 

Delete the title and insert:

 

"A bill for an act relating to traffic regulations; modifying provisions related to highway work zone speeds, driving in the right-hand lane, and seat belt requirements for persons operating a type III vehicle as a school bus; amending Minnesota Statutes 2008, sections 169.14, subdivision 5d; 169.685, subdivision 6; 171.13, by adding a subdivision."

 

 

We request the adoption of this report and repassage of the bill.

 

House Conferees:  Melissa Hortman, Bernard Lieder and Carol McFarlane.

 

Senate Conferees:  Joe Gimse, Steve Murphy and Jim Carlson.

 

 

      Hortman moved that the report of the Conference Committee on H. F. No. 3263 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

H. F. No. 3263, A bill for an act relating to traffic regulations; modifying provisions governing speed limits in highway work zones, operating vehicles on multilane roads, and surcharges on traffic citations; creating traffic safety education account; amending Minnesota Statutes 2008, sections 169.14, subdivision 5d; 169.18, subdivisions 7, 10, by adding a subdivision; 171.12, subdivision 6; 171.13, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 357.021, subdivision 6.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 134 yeas and 0 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12424


 

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

      There being no objection, the order of business reverted to Messages from the Senate.

 

 

MESSAGES FROM THE SENATE

 

 

      The following message was received from the Senate:

 

 

Madam Speaker: 

 

      I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested: 

 

      H. F. No. 910, A bill for an act relating to notaries public; modifying fees; regulating commissions and notarial stamps and seals; providing clarifications; providing for the accommodations of physical limitations; amending Minnesota Statutes 2008, sections 358.028; 358.09; 358.15; 358.47; 358.48; 359.01, subdivision 2; 359.02; 359.03, subdivisions 1, 2, 3, 4; 359.061; 359.12; Minnesota Statutes 2009 Supplement, sections 357.021, subdivision 2; 359.01, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 359; repealing Minnesota Statutes 2008, section 359.05.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

      Hortman moved that the House refuse to concur in the Senate amendments to H. F. No. 910, that the Speaker appoint a Conference Committee of 3 members of the House, and that the House requests that a like committee be appointed by the Senate to confer on the disagreeing votes of the two houses.  The motion prevailed.

 

 

      Morrow moved that the House recess subject to the call of the Chair.  The motion prevailed.

 

 

RECESS

 

 

RECONVENED

 

      The House reconvened and was called to order by Speaker pro tempore Hortman.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12425


 

      Atkins was excused between the hours of 8:20 p.m. and 9:35 p.m.

 

 

FISCAL CALENDAR

 

 

      Pursuant to rule 1.22, Solberg requested immediate consideration of H. F. No. 3833.

 

 

      H. F. No. 3833 was reported to the House.

 

 

Greiling moved to amend H. F. No. 3833 as follows:

 

Page 85, delete section 3

 

Page 86, delete section 4

 

Page 89, delete sections 8 and 9

 

Page 92, delete sections 12 and 13

 

Page 131, delete article 10

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.

 

 

Buesgens and Peppin moved to amend H. F. No. 3833, as amended, as follows:

 

Page 42, after line 31, insert:

 

"Sec. 23.  [123A.47] ELECTION TO DETACH LAND FOR A NEW SCHOOL DISTRICT. 

 

Subdivision 1.  Detachment ballot question; school board general election.  The school board of an independent school district may, on its own motion or upon a petition signed by at least 50 electors of the district or ten percent of the votes cast in the most recent school board general election, whichever number is larger, place on the ballot at the next school district general election the question whether, as of the date when a new board can be elected and qualified under subdivision 2, to detach from the school district a clearly and accurately described land area located within the boundaries of the district and, consequently, to classify that detached area as a new independent school district for which the education commissioner must assign an identification number.  If the voters approve detaching the described land area and, consequently, classifying that detached area as a new independent school district for which the education commissioner must assign an identification number, then the detachment must be accomplished according to this section.

 

Subd. 2.  School board elections.  (a) The county auditor of the county that contains the greatest land area for the newly constituted school district and the county auditor of the county that contains the greatest land area for the


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12426


 

newly reconstituted school district must determine a date, not less than 30 nor more than 60 days after the voters approve the detachment ballot question under subdivision 1, to hold a special election in the district for the purpose of electing a board of six members for terms of four years and until successors are elected and qualified under chapter 205A.  The provisions of section 123A.48, subdivision 20, paragraphs (a) to (e), governing school board elections in consolidating districts shall apply to the newly constituted and newly reconstituted districts under this section.

 

(b) Notwithstanding any law to the contrary, the terms of the board members of the school district from which land is being detached continue until the first school board members are elected and qualified under this subdivision.

 

(c) Notwithstanding any law to the contrary, an individual may serve on the school board of the school district from which land is being detached and subsequently, if a resident of the district, on a school board elected and qualified under this subdivision.

 

Subd. 3.  Tax liability for existing bonded debt.  All taxable property in the area detached under subdivision 1 remains obligated for any bonded debt of the school district from which the property was detached and to which that detached property was subject before the date of the detachment.  In addition, all taxable property in a newly classified district is taxable for payment of school district obligations authorized on or after the date of the detachment by the school board or the voters of that school district.

 

Subd. 4.  Current assets and liabilities; distribution of assets; real property.  (a) If the voters approve detachment under subdivision 1, the commissioner shall issue an order for dividing and distributing the current assets and liabilities, real and personal, and the legally valid and enforceable claims and contractual obligations of the school district from which the property was detached, so that the two newly classified districts can independently operate.

 

(b) The commissioner's order under paragraph (a) must transfer the real property interests from the school district subject to the detachment to the two newly classified districts.  The commissioner must determine the distribution of and the amount, if any, paid for the real property.  The commissioner's order may impose in favor of one of the two newly classified districts a specified dollar amount as a claim against the other newly classified district receiving real property interests under the order.  The claim must be paid and enforced according to the law governing payment of judgments against a school district.

 

Subd. 5.  Licensed and nonlicensed employees.  (a) The obligations of both newly classified districts to licensed employees are governed by section 123A.75.

 

(b) The nonlicensed employees of the school district from which the property was detached under subdivision 1 may apply to remain in the newly reconstituted district or may apply to move to the newly constituted district.  The commissioner shall assign the nonlicensed employees to unfilled positions in both districts in order of seniority.  All rights of and obligations to nonlicensed employees continue in the same manner as before the effective date of the detachment under subdivision 1.

 

EFFECTIVE DATE.  (a) This section, subdivision 1, is effective the day following final enactment.  If the voters approve the ballot question, the education commissioner shall classify the detached area as a new independent school district and also classify the area that remains after the detachment as a new independent school district, assign identification numbers to both new districts, and modify the records and any plats, petitions, and proceedings involving the affected school districts to conform with the detachment under this section.

 

(b) This section, subdivisions 2, 3, and 5, are effective the day after the voters approve the ballot question under subdivision 1.


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(c) This section, subdivision 4, is effective the day after the voters approve the ballot question under subdivision 1 and applies to both newly classified districts."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the Buesgens and Peppin amendment and the roll was called.  There were 32 yeas and 100 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Brod

Buesgens

Davids

Dean

Demmer

Dettmer

Downey

Drazkowski

Eastlund

Garofalo

Gottwalt

Hackbarth

Holberg

Hoppe

Howes

Kelly

Kiffmeyer

Kohls

Lanning

Mack

Mullery

Newton

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Abeler

Anderson, P.

Anderson, S.

Anzelc

Beard

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Dill

Dittrich

Doepke

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Gunther

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Murdock

Murphy, E.

Murphy, M.

Nelson

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail and the amendment was not adopted.

 

 

Seifert moved to amend H. F. No. 3833, as amended, as follows:

 

Page 76, after line 10, insert:

 

"Section 1.  Minnesota Statutes 2008, section 123B.56, is amended to read:

 

123B.56 HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT. 


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12428


 

"Health, safety, and environmental management" means school district activities necessary for a district's compliance with state law and rules of the Departments of Health, Labor and Industry, Public Safety, and Pollution Control Agency as well as any related federal standards, including federal standards and best practices designed to protect students and school employees from the H1N1 flu.  These activities include hazard assessment, required training, record keeping, and program management.

 

EFFECTIVE DATE.  This section is effective the day following final enactment."

 

Page 83, after line 32, insert:

 

"Sec. 4.  H1N1 PREVENTION. 

 

Notwithstanding Minnesota Statutes, section 123B.56 or 123B.57, a school district may transfer any amount of its approved health and safety revenue for health, safety, and environmental management to H1N1 flu prevention activities.

 

EFFECTIVE DATE.  This section is effective the day following final enactment."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.

 

 

      Emmer was excused for the remainder of today's session.

 

 

      Speaker pro tempore Hortman called Sertich to the Chair.

 

 

Buesgens, Pelowski, Emmer and Drazkowski moved to amend H. F. No. 3833, as amended, as follows:

 

Page 63, after line 24, insert:

 

"Sec. 42.  RACE TO THE TOP WITHDRAWAL. 

 

The commissioner of education shall cancel and withdraw the application submitted by the state of Minnesota to the federal Department of Education for Race to the Top grant funding established under the American Recovery and Reinvestment Act, Public Law 111-5, and any other applications or agreements submitted by the state of Minnesota pertaining to the Race to the Top grant program.  The commissioner shall not reapply for any federal Race to the Top grants established under the American Recovery and Reinvestment Act.  Neither the commissioner nor any Minnesota public school shall accept funding or mandates from the federal Race to the Top program.  All memoranda of agreement concerning the federal Race to the Top grant program are nullified.

 

EFFECTIVE DATE.  This section is effective retroactively from January 20, 2010."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12429


 

      The question was taken on the Buesgens et al amendment and the roll was called.  There were 25 yeas and 105 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anzelc

Beard

Bly

Brod

Buesgens

Davnie

Dean

Drazkowski

Faust

Hackbarth

Hilty

Kohls

Newton

Pelowski

Peppin

Rukavina

Scott

Seifert

Severson

Shimanski

Slocum

Sterner

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Abeler

Anderson, P.

Anderson, S.

Benson

Bigham

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davids

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Eastlund

Eken

Falk

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Nelson

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Persell

Peterson

Poppe

Reinert

Rosenthal

Ruud

Sailer

Sanders

Scalze

Sertich

Simon

Slawik

Smith

Solberg

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail and the amendment was not adopted.

 

 

Mariani moved to amend H. F. No. 3833, as amended, as follows:

 

Page 38, delete section 20 and insert:

 

"Sec. 20.  Minnesota Statutes 2009 Supplement, section 122A.40, subdivision 8, is amended to read:

 

Subd. 8.  Formative and summative evaluations and peer coaching for continuing contract teachers.  (a) To improve student learning and success, a school board and an exclusive representative of the teachers in the district, consistent with paragraph (b), shall develop a formative and summative teacher evaluation and peer review process for continuing contract teachers through joint agreement a meet and confer process under section 179A.08.  The peer review process may must include having trained observers serve as peer coaches or having teachers participate in professional learning communities.

 

(b) To develop, improve, and support qualified teachers and effective teaching practices and improve student learning and success, the evaluation process for continuing contract teachers must:

 

(1) be a collaborative effort between teachers and school administrators to develop and implement a teacher evaluation process that is based on (i) professional teaching standards and (ii) multiple performance-based measures and includes both (iii) annual formative assessments by one or more master or mentor teachers or other qualified


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12430


 

educators to improve instruction through identifying teachers' strengths and weaknesses and (iv) summative assessments conducted by one or more qualified school administrators at least once every three school years that are used to make personnel decisions, consistent with clause (2);

 

(2) coordinate staff development activities under section 122A.60 with this evaluation process and teachers' evaluation outcomes and give teachers not meeting standards of effective practice the support to improve;

 

(3) include in-class observations by trained evaluators who use a valid observation framework or protocol;

 

(4) demonstrate teachers' content knowledge and teaching skills; and

 

(5) use longitudinal data on student academic growth under section 120B.35, subdivision 3, paragraphs (a) and (b), student attendance, and student engagement and connection under section 120B.35, subdivision 3, paragraph (d), and other state and local outcome measures as evaluation components.

 

As part of the evaluation process under this paragraph, teachers may develop and present a portfolio demonstrating evidence of reflection and professional growth, consistent with section 122A.18, subdivision 4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess portfolio content, and also include other indicators of effective teaching.

 

(c) The requirements of this subdivision are not terms and conditions of employment under chapter 179A.

 

(d) To the extent consistent with this subdivision, a school district or school site participating in an alternative teacher performance pay system under section 122A.414 may use its approved educational improvement plan to meet the requirements of this subdivision.

 

EFFECTIVE DATE.  This section is effective for the 2010-2011 school year and later.  A school district must use the 2010-2011 school year to develop a teacher evaluation process under this section and implement the evaluation process in the 2011-2012 school year and later."

 

Page 39, delete section 21, and insert:

 

"Sec. 21.  Minnesota Statutes 2009 Supplement, section 122A.41, subdivision 5, is amended to read:

 

Subd. 5.  Formative and summative evaluations and peer coaching for continuing contract teachers.  (a) To improve student learning and success, a school board and an exclusive representative of the teachers in the district, consistent with paragraph (b), must develop a formative and summative teacher evaluation and peer review process for nonprobationary teachers through joint agreement a meet and confer process under section 179A.08.  The peer review process may must include having trained observers serve as peer coaches or having teachers participate in professional learning communities.

 

(b) To develop, improve, and support qualified teachers and effective teaching practices and improve student learning and success, the evaluation process for continuing contract teachers must:

 

(1) be a collaborative effort between teachers and school administrators to develop and implement a teacher evaluation process that is based on (i) professional teaching standards and (ii) multiple performance-based measures and includes both (iii) annual formative assessments by one or more master or mentor teachers or other qualified educators to improve instruction through identifying teachers' strengths and weaknesses and (iv) summative assessments conducted by one or more qualified school administrators at least once every three school years that are used to make personnel decisions, consistent with clause (2);


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12431


 

(2) coordinate staff development activities under section 122A.60 with this evaluation process and teachers' evaluation outcomes and give teachers not meeting standards of effective practice the support to improve;

 

(3) include in-class observations by trained evaluators who use a valid observation framework or protocol;

 

(4) demonstrate teachers' content knowledge and teaching skills; and

 

(5) use longitudinal data on student academic growth under section 120B.35, subdivision 3, paragraphs (a) and (b), student attendance, and student engagement and connection under section 120B.35, subdivision 3, paragraph (d), and other state and local outcome measures as evaluation components.

 

As part of the evaluation process under this paragraph, teachers may develop and present a portfolio demonstrating evidence of reflection and professional growth, consistent with section 122A.18, subdivision 4, paragraph (b), using criteria developed by the Board of Teaching to reliably assess portfolio content, and also include other indicators of effective teaching.

 

(c) The requirements of this subdivision are not terms and conditions of employment under chapter 179A.

 

(d) To the extent consistent with this subdivision, a school district or school site participating in an alternative teacher performance pay system under section 122A.414 may use its approved educational improvement plan to meet the requirements of this subdivision.

 

EFFECTIVE DATE.  This section is effective for the 2010-2011 school year and later.  A school district must use the 2010-2011 school year to develop a teacher evaluation process under this section and implement the evaluation process in the 2011-2012 school year and later."

 

Page 42, delete section 23, and insert:

 

"Sec. 23.  Minnesota Statutes 2009 Supplement, section 123B.143, subdivision 1, is amended to read:

 

Subdivision 1.  Contract; duties.  All districts maintaining a classified secondary school must employ a superintendent who shall be an ex officio nonvoting member of the school board.  The authority for selection and employment of a superintendent must be vested in the board in all cases.  An individual employed by a board as a superintendent shall have an initial employment contract for a period of time no longer than three years from the date of employment.  Any subsequent employment contract must not exceed a period of three years.  A board, at its discretion, may or may not renew an employment contract.  A board must not, by action or inaction, extend the duration of an existing employment contract.  Beginning 365 days prior to the expiration date of an existing employment contract, a board may negotiate and enter into a subsequent employment contract to take effect upon the expiration of the existing contract.  A subsequent contract must be contingent upon the employee completing the terms of an existing contract.  If a contract between a board and a superintendent is terminated prior to the date specified in the contract, the board may not enter into another superintendent contract with that same individual that has a term that extends beyond the date specified in the terminated contract.  A board may terminate a superintendent during the term of an employment contract for any of the grounds specified in section 122A.40, subdivision 9 or 13.  A superintendent shall not rely upon an employment contract with a board to assert any other continuing contract rights in the position of superintendent under section 122A.40.  Notwithstanding the provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no individual shall have a right to employment as a superintendent based on order of employment in any district.  If two or more districts enter into an agreement for the purchase or sharing of the services of a superintendent, the contracting districts have the absolute right to select one of the individuals employed to serve as superintendent in one of the contracting districts and no individual has a right to employment as the superintendent to provide all or part of the services based on order of employment in a contracting district.  The superintendent of a district shall perform the following:


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12432


 

(1) visit and supervise the schools in the district, report and make recommendations about their condition when advisable or on request by the board;

 

(2) recommend to the board employment and dismissal of teachers;

 

(3) evaluate each school principal and assistant principal assigned responsibility for supervising a school building within the district, consistent with section 123B.147, subdivision 3, paragraph (b);

 

(4) superintend school grading practices and examinations for promotions;

 

(4) (5) make reports required by the commissioner; and

 

(5) (6) perform other duties prescribed by the board.

 

EFFECTIVE DATE.  This section is effective for the 2011-2012 school year and later."

 

Page 44, delete section 24, and insert:

 

"Sec. 24.  Minnesota Statutes 2008, section 123B.147, subdivision 3, is amended to read:

 

Subd. 3.  Duties; evaluation.  (a) The principal shall provide administrative, supervisory, and instructional leadership services, under the supervision of the superintendent of schools of the district and in accordance with according to the policies, rules, and regulations of the school board of education, for the planning, management, operation, and evaluation of the education program of the building or buildings to which the principal is assigned.

 

(b) To enhance principals' leadership skills and support and improve teachers' teaching practices, the school board and the exclusive representative of the school principals of the district must use a meet and confer process under section 179A.08 to design and implement a plan for formative and summative evaluations of the school principals and assistant principals assigned responsibility for supervising a school building within the district.  The annual evaluation process must:

 

(1) be designed to support and improve principals' instructional leadership, organizational management, and professional development, and strengthen principals' capacity in the areas of instruction, supervision, evaluation, and the development of teachers and highly effective school organizations;

 

(2) include annual formative evaluations by qualified and trained school administrators to improve principals' professional competency and summative evaluations conducted by qualified and trained school administrators at least once every three years to make personal decisions consistent with clause (3);

 

(3) be linked to professional development and give principals not meeting standards of effective practice the support to improve;

 

(4) be consistent with the principals' job description, district long-term plans and goals, and principals' own professional multiyear growth plans and goals;

 

(5) include on-the-job observations by trained evaluators and verbal and written feedback on performance;

 

(6) require feedback from teachers, support staff, students, and parents; and

 

(7) use longitudinal data on student academic growth under section 120B.35, subdivision 3, as an evaluation component.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12433


 

EFFECTIVE DATE.  This section is effective for the 2010-2011 school year.  A school district must use the 2010-2011 school year to develop a principal evaluation process under this section and implement the evaluation process in the 2011-2012 school year and later."

 

Page 53, delete section 29, and insert:

 

"Sec. 29.  Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 11, is amended to read:

 

Subd. 11.  Employment and other operating matters.  (a) A charter school must employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1, who hold valid licenses to perform the particular service for which they are employed in the school.  The charter school's state aid may be reduced under section 127A.43 if the school employs a teacher who is not appropriately licensed or approved by the Board of Teaching.  The school may employ necessary employees who are not required to hold teaching licenses to perform duties other than teaching and may contract for other services.  The school may discharge teachers and nonlicensed employees.  The charter school board is subject to section 181.932.  When offering employment to a prospective employee, a charter school must give that employee a written description of the terms and conditions of employment and the school's personnel policies.  The board of directors must design and implement a formative and summative evaluation and peer review process for a teacher employed in the school that is consistent with section 122A.40, subdivision 8, paragraph (b).  Teachers evaluations do not create an expectation of continuing employment.

 

(b) A person, without holding a valid administrator's license, may perform administrative, supervisory, or instructional leadership duties.  The board of directors shall establish qualifications for persons that hold administrative, supervisory, or instructional leadership roles.  The qualifications shall include at least the following areas:  instruction and assessment; human resource and personnel management; financial management; legal and compliance management; effective communication; and board, authorizer, and community relationships.  The board of directors shall use those qualifications as the basis for job descriptions, and hiring, and for performance evaluations consistent with section 123B.147, subdivision 3, paragraph (b), of those who hold administrative, supervisory, or instructional leadership roles.  Performance evaluations do not create an expectation of continuing employment.  The board of directors and an individual who does not hold a valid administrative license and who serves in an administrative, supervisory, or instructional leadership position shall develop a professional development plan.  Documentation of the implementation of the professional development plan of these persons shall be included in the school's annual report.

 

(c) The board of directors also shall decide matters related to the operation of the school, including budgeting, curriculum and operating procedures.

 

EFFECTIVE DATE.  This section is effective for the 2010-2011 school year and later.  A charter school must use the 2010-2011 school year to develop an evaluation process under paragraphs (a) and (b) of this section and implement the evaluation process in the 2011-2012 school year and later."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.

 

 

Davnie, Norton, Hilstrom, Faust, Torkelson, Hilty, Sailer, Eken, Wagenius, Persell and Greiling moved to amend H. F. No. 3833, as amended, as follows:

 

Page 63, after line 24, insert:

 

"Sec. 42.  SCHOOL IMPROVEMENT GRANTS; INTERVENTIONS. 


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12434


 

A school that the Minnesota Department of Education has identified as one of Minnesota's 34 persistently lowest achieving schools for purposes of the federal school improvement grant program under the American Recovery and Reinvestment Act is not required, as part of implementing a school intervention model, to replace any teacher or a principal who meets standards of effective practice and is currently employed at the school on the effective date of this section if:

 

(1) the principal was appointed or the teacher was employed in the school in the 2007-2008, 2008-2009, or 2009‑2010 school year to establish new educational outcomes; or

 

(2) the contractor conducting a quality school review under the school improvement grant process determines that the school's classification as a persistently lowest achieving school is not directly related to the performance or skills of a teacher or principal currently employed at the school.

 

The Minnesota Department of Education must revise its school improvement grant application to conform with the requirements of this section.

 

EFFECTIVE DATE.  This section is effective the day following final enactment."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.

 

 

Garofalo moved to amend H. F. No. 3833, as amended.

 

 

Demmer requested a division of the Garofalo amendment to H. F. No. 3833, as amended.

 

 

Demmer further requested that the second portion of the divided Garofalo amendment to H. F. No. 3833, as amended, be voted on first.

 

 

The second portion of the Garofalo amendment to H. F. No. 3833, as amended, reads as follows:

 

Page 139, after line 10, insert:

 

"ARTICLE 11

 

RACE TO THE TOP

 

Sec. 2.  Minnesota Statutes 2009 Supplement, section 122A.09, subdivision 4, is amended to read:

 

Subd. 4.  License and rules.  (a) The board must adopt rules to license public school teachers and interns subject to chapter 14.

 

(b) The board must adopt rules requiring a person to successfully complete pass a skills examination in reading, writing, and mathematics as a requirement for initial teacher licensure entrance into a board-approved teacher preparation program.  Such rules must require college and universities offering a board-approved teacher preparation


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12435


 

program to provide offer remedial assistance to persons who did not achieve a qualifying score on the skills examination, including those for whom English is a second language.  Persons needing remedial assistance must be successfully remediated prior to entrance into a board-approved teacher preparation program.

 

(c) The board must adopt rules to approve teacher preparation programs.  The board, upon the request of a postsecondary student preparing for teacher licensure or a licensed graduate of a teacher preparation program, shall assist in resolving a dispute between the person and a postsecondary institution providing a teacher preparation program when the dispute involves an institution's recommendation for licensure affecting the person or the person's credentials.  At the board's discretion, assistance may include the application of chapter 14.

 

(d) The board must provide the leadership and shall adopt rules for the redesign of teacher education programs to implement a research based, results-oriented curriculum that focuses on the skills teachers need in order to be effective.  The board shall implement new systems of teacher preparation program evaluation to assure program effectiveness based on proficiency of graduates in demonstrating attainment of program outcomes.

 

(e) The board must adopt rules requiring candidates for initial licenses to successfully complete pass an examination of general pedagogical knowledge and examinations of licensure-specific teaching skills.  The rules shall be effective by September 1, 2001.  The rules under this paragraph also must require candidates for initial licenses to teach prekindergarten or elementary students to successfully complete pass, as part of the examination of licensure-specific teaching skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive, scientifically based reading instruction under section 122A.06, subdivision 4, and their knowledge and understanding of the foundations of reading development, the development of reading comprehension, and reading assessment and instruction, and their ability to integrate that knowledge and understanding.  The rules under this paragraph also must require general education candidates for initial licenses to teach prekindergarten or elementary students to pass, as part of the examination of licensure-specific teaching skills, test items assessing the candidates' knowledge, skill, and ability in mathematics.

 

(f) The board must adopt rules requiring teacher educators to work directly with elementary or secondary school teachers in elementary or secondary schools to obtain periodic exposure to the elementary or secondary teaching environment.

 

(g) The board must grant licenses to interns and to candidates for initial licenses.

 

(h) The board must design and implement an assessment system which requires a candidate for an initial license and first continuing license to demonstrate the abilities necessary to perform selected, representative teaching tasks at appropriate levels.

 

(i) The board must receive recommendations from local committees as established by the board for the renewal of teaching licenses.

 

(j) The board must grant life licenses to those who qualify according to requirements established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 214.10.  The board must not establish any expiration date for application for life licenses.

 

(k) The board must adopt rules that require all licensed teachers who are renewing their continuing license to include in their renewal requirements further preparation in the areas of using positive behavior interventions and in accommodating, modifying, and adapting curricula, materials, and strategies to appropriately meet the needs of individual students and ensure adequate progress toward the state's graduation rule.

 

(l) In adopting rules to license public school teachers who provide health-related services for disabled children, the board shall adopt rules consistent with license or registration requirements of the commissioner of health and the health-related boards who license personnel who perform similar services outside of the school.


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(m) The board must adopt rules that require all licensed teachers who are renewing their continuing license to include in their renewal requirements further reading preparation, consistent with section 122A.06, subdivision 4.  The rules do not take effect until they are approved by law.  Teachers who do not provide direct instruction including, at least, counselors, school psychologists, school nurses, school social workers, audiovisual directors and coordinators, and recreation personnel are exempt from this section.

 

(n) The board must adopt rules that require all licensed teachers who are renewing their continuing license to include in their renewal requirements further preparation in understanding the key warning signs of early-onset mental illness in children and adolescents.

 

EFFECTIVE DATE.  This section is effective September 1, 2011.

 

Sec. 3.  Minnesota Statutes 2008, section 122A.14, is amended by adding a subdivision to read:

 

Subd. 10.  Rules incorporating national standards.  The Board of School Administrators must engage in rulemaking to incorporate national standards into the licensing standards for principals.  The rules must address national standards for effective school leadership.

 

Sec. 4.  Minnesota Statutes 2008, section 122A.14, is amended by adding a subdivision to read:

 

Subd. 11.  Tiered licensure.  (a) The Board of School Administrators shall establish requirements for issuance of initial, standard, and master principal licenses.  Requirements for earning each differentiated license must be based, at a minimum, on principal performance as measured by section 122A.411.

 

(b) "Initial principal license" means a license granted after successfully completing the requirements for licensure as set forth by the Board of School Administrators.  An initial license must be issued prior to the issuance of a standard license and cannot be issued for a duration of less than three years.

 

(c) "Standard principal license" means a license obtained after successfully being employed for at least three years in the area of initial licensure, completing an induction program, and achieving the minimum expectation for principal performance as measured by section 122A.411.

 

(d) "Master principal license" means a license obtained after having met the requirements for a standard license, meeting the definition of "highly effective" under section 122A.411, and demonstrating instructional leadership at the local, state, or national level according to the criteria established by the Board of School Administrators.

 

Sec. 5.  Minnesota Statutes 2008, section 122A.18, subdivision 1, is amended to read:

 

Subdivision 1.  Authority to license.  (a) The Board of Teaching must license teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel, as defined in section 122A.15, subdivision 2. 

 

(b) The Board of School Administrators must license supervisory personnel as defined in section 122A.15, subdivision 2, except for athletic coaches. 

 

(c) Licenses under the jurisdiction of the Board of Teaching, the Board of School Administrators, and the commissioner of education must be issued through the licensing section of the department.

 

(d) The Board of Teaching and the Department of Education must enter into a data sharing agreement to share educational data at the kindergarten through grade 12 level for the limited purpose of program approval and improvement for teacher education programs.  The program approval process must include targeted redesign of teacher preparation programs to address identified kindergarten through grade 12 student areas of concern.  The Board of Teaching must ensure that this information remains confidential and shall only be used for this purpose.  Any unauthorized disclosure shall be subject to a penalty.


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(e) The Board of School Administrators and the Department of Education must enter into a data sharing agreement to share educational data at the kindergarten through grade 12 level for the limited purpose of program approval and improvement for education administration programs.  The program approval process must include targeted redesign of education administration preparation programs to address identified kindergarten through grade 12 student areas of concern.  The Board of School Administrators must ensure that this information remains confidential and shall only be used for this purpose.  Any unauthorized disclosure shall be subject to a penalty.

 

Sec. 6.  Minnesota Statutes 2008, section 122A.18, subdivision 2, is amended to read:

 

Subd. 2.  Teacher and support personnel qualifications.  (a) The Board of Teaching must issue licenses under its jurisdiction to persons the board finds to be qualified and competent for their respective positions.

 

(b) The board must require a person to successfully complete pass an examination of skills in reading, writing, and mathematics before being granted an initial teaching license to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special education programs.  The board must require colleges and universities offering a board approved teacher preparation program to provide offer remedial assistance that includes a formal diagnostic component to persons enrolled in their institution who did not achieve a qualifying score on the skills examination, including those for whom English is a second language.  The colleges and universities must provide offer assistance in the specific academic areas of deficiency in which the person did not achieve a qualifying score.  School districts must provide similar, appropriate, and timely remedial assistance that includes a formal diagnostic component and mentoring to those persons employed by the district who completed their teacher education program outside the state of Minnesota, received a one-year license to teach in Minnesota and did not achieve a qualifying score on the skills examination, including those persons for whom English is a second language.  The Board of Teaching shall report annually to the education committees of the legislature on the total number of teacher candidates during the most recent school year taking the skills examination, the number who achieve a qualifying score on the examination, the number who do not achieve a qualifying score on the examination, the distribution of all candidates' scores, the number of candidates who have taken the examination at least once before, and the number of candidates who have taken the examination at least once before and achieve a qualifying score.

 

(c) A person who has completed an approved teacher preparation program and obtained a one-year license to teach, but has not successfully completed the skills examination, may renew the one-year license for two additional one-year periods.  Each renewal of the one-year license is contingent upon the licensee:

 

(1) providing evidence of participating in an approved remedial assistance program provided by a school district or postsecondary institution that includes a formal diagnostic component in the specific areas in which the licensee did not obtain qualifying scores; and

 

(2) attempting to successfully complete the skills examination during the period of each one-year license.

 

(d) (c) The Board of Teaching must grant continuing licenses only to those persons who have met board criteria for granting a continuing license, which includes successfully completing passing the skills examination in reading, writing, and mathematics.

 

(e) (d) All colleges and universities approved by the Board of Teaching to prepare persons for teacher licensure must include in their teacher preparation programs a common core of teaching knowledge and skills to be acquired by all persons recommended for teacher licensure.  This common core shall meet the standards developed by the interstate new teacher assessment and support consortium in its 1992 "model standards for beginning teacher licensing and development." Amendments to standards adopted under this paragraph are covered by chapter 14.  The Board of Teaching shall report annually to the education committees of the legislature on the performance of teacher candidates on common core assessments of knowledge and skills under this paragraph during the most recent school year.


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(e) All colleges and universities approved by the Board of Teaching to prepare persons for teacher licensure must require completion of a course designed to teach online pedagogy and completion of at least one content course delivered online by all persons recommended for teacher licensure.

 

(f) The Board of Teaching must ensure the kindergarten through grade 12 teacher licensing standards maintain a high level of alignment with the kindergarten through grade 12 student standards.  The Board of Teaching must adopt a review cycle that mirrors the kindergarten through grade 12 student standards review cycle under section 120B.023, subdivision 2.  The teacher standards must be reviewed and aligned with the kindergarten through grade 12 student standards within one year of the final review and adoption of the kindergarten through grade 12 student standards.

 

EFFECTIVE DATE.  This section is effective September 1, 2011.

 

Sec. 7.  Minnesota Statutes 2008, section 122A.18, is amended by adding a subdivision to read:

 

Subd. 10.  Tiered licensure.  (a) The Board of Teaching shall establish requirements for issuance of initial licenses, standard licenses, and master teacher licenses.  Requirements for earning each differentiated license must be based at a minimum on teacher performance as measured by section 122A.411.

 

(b) "Initial teacher license" means a license granted after successfully completing the requirements for licensure as set forth by the Board of Teaching.  An initial license must be issued prior to the issuance of a standard license and cannot be issued for a duration of less than three years.

 

(c) "Standard teacher license" means a license obtained after successfully being employed for at least three years in the area of initial licensure, completing an induction program and the probationary period requirements set forth in section 122A.40, subdivision 5, or 122A.41, subdivision 2, achieving the minimum expectations for teacher performance as measured by section 122A.411, and completing continuous improvement including reflective practice under this section.

 

(d) "Master teacher license" means having met the requirements for a standard license, meeting the definition of "highly effective" under section 122A.411, and either be certified by the National Board for Professional Teaching Standards or demonstrate instructional leadership at the local level according to Board of Teaching established criteria.  Licensed teachers who hold current certification from the National Board for Professional Teaching Standards shall be granted a master teacher license.

 

Sec. 8.  Minnesota Statutes 2008, section 122A.23, subdivision 2, is amended to read:

 

Subd. 2.  Applicants licensed in other states.  (a) Subject to the requirements of sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue a teaching license or a temporary teaching license under paragraphs (b) to (e) to an applicant who holds at least a baccalaureate degree from a regionally accredited college or university and holds or held a similar out-of-state teaching license that requires the applicant to successfully complete a teacher preparation program approved by the issuing state, which includes field-specific teaching methods and student teaching or essentially equivalent experience. 

 

(b) The Board of Teaching must issue a teaching license to an applicant who:

 

(1) successfully completed passed all exams and successfully completed human relations preparation components required by the Board of Teaching; and

 

(2) holds or held an out-of-state teaching license to teach the same content field and grade levels if the scope of the out-of-state license is no more than one grade level less than a similar Minnesota license.


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(c) The Board of Teaching, consistent with board rules, must issue up to three one-year temporary teaching licenses to an applicant who holds or held an out-of-state teaching license to teach the same content field and grade levels, where the scope of the out-of-state license is no more than one grade level less than a similar Minnesota license, but has not successfully completed passed all exams and successfully completed human relations preparation components required by the Board of Teaching.

 

(d) The Board of Teaching, consistent with board rules, must issue up to three one-year temporary teaching licenses to an applicant who:

 

(1) successfully completed passed all exams and successfully completed human relations preparation components required by the Board of Teaching; and

 

(2) holds or held an out-of-state teaching license to teach the same content field and grade levels, where the scope of the out-of-state license is no more than one grade level less than a similar Minnesota license, but has not completed field-specific teaching methods or student teaching or equivalent experience.

 

The applicant may complete field-specific teaching methods and student teaching or equivalent experience by successfully participating in a one-year school district mentorship program consistent with board-adopted standards of effective practice and Minnesota graduation requirements.

 

(e) The Board of Teaching must issue a temporary teaching license for a term of up to three years only in the content field or grade levels specified in the out-of-state license to an applicant who:

 

(1) successfully completed passed all exams and successfully completed human relations preparation components required by the Board of Teaching; and

 

(2) holds or held an out-of-state teaching license where the out-of-state license is more limited in the content field or grade levels than a similar Minnesota license.

 

(f) The Board of Teaching must not issue to an applicant more than three one-year temporary teaching licenses under this subdivision.

 

(g) The Board of Teaching must not issue a license under this subdivision if the applicant has not attained the additional degrees, credentials, or licenses required in a particular licensure field.

 

EFFECTIVE DATE.  This section is effective September 1, 2011.

 

Sec. 9.  [122A.245] ALTERNATIVE TEACHER PREPARATION PROGRAM AND LIMITED-TERM TEACHER LICENSE. 

 

Subdivision 1.  Requirements.  (a) The Board of Teaching must approve qualified teacher preparation programs under this section that are a means to acquire a two-year limited-term license and to prepare for acquiring an initial license.  Programs are partnerships composed of school districts or charter schools and either:

 

(1) a college or university with an alternative teacher preparation program approved by the Board of Teaching;

 

(2) a nonprofit corporation formed for an education-related purpose and subject to chapter 317A with a teacher preparation program approved by the Board of Teaching; or

 

(3) a teacher preparation program within a district approved by the Board of Teaching.


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(b) Prior to participation in this program, a candidate must:

 

(1) have a bachelor's degree with a minimum 3.0 grade point average, or have a bachelor's degree and meet other criteria approved by the Board of Teaching;

 

(2) pass the reading, writing, and mathematics skills examination under section 122A.18; and

 

(3) obtain qualifying scores on content area and pedagogy tests approved by the Board of Teaching.

 

Subd. 2.  Characteristics.  An alternative teacher preparation program under this section must include:

 

(1) a minimum 200-hour instructional phase that provides intensive preparation before that person assumes classroom responsibilities;

 

(2) a research-based and results-oriented approach focused on best teaching practices to increase student proficiency and growth measured against state academic standards;

 

(3) strategies to combine pedagogy and best teaching practices to better inform a teacher's classroom instruction;

 

(4) assessment, supervision, and evaluation of the program participant to determine the participant's specific needs throughout the program and to support the participant in successfully completing the program;

 

(5) intensive, ongoing, and multiyear professional learning opportunities that can accelerate an initial educator's professional growth and that include developing dispositions and practices that support student learning, orientations to the workplace, a network of peer support, seminars and workshops, and mentoring focused on standards of professional practice and continual professional growth; and

 

(6) a requirement that program participants demonstrate to the local site team under subdivision 5 that they are making satisfactory progress toward acquiring an initial license from the Board of Teaching.

 

Subd. 3.  Program approval.  The Board of Teaching must approve alternative teacher preparation programs under this section based on board-adopted criteria that reflect best practices for alternative teacher preparation programs consistent with this section.  The board must permit licensure candidates to demonstrate licensure competencies in school-based settings and through other nontraditional means.

 

Subd. 4.  Employment conditions.  Where applicable, teachers with a limited-term license under this section are members of and subject to the terms of the local collective bargaining agreement between the local representative of the teachers and the school board.

 

Subd. 5.  Approval for initial license.  A local site team that may include teachers, school administrators, postsecondary faculty, and nonprofit staff must evaluate the performance of a teacher candidate using the Minnesota state standards of effective practice for teachers established by rule and submit to the board an evaluation report recommending whether or not to issue an initial license to a teacher candidate.

 

Subd. 6.  Initial license.  The Board of Teaching must issue an initial license to a teacher candidate under this section who successfully performs throughout the program and is recommended for licensure under subdivision 5.

 

Subd. 7.  Qualified teacher.  A person with a valid limited-term license under this section is the teacher of record and a qualified teacher within the meaning of section 122A.16.


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Sec. 10.  Minnesota Statutes 2008, section 122A.40, subdivision 2, is amended to read:

 

Subd. 2.  Nonprovisional license Licenses defined.  For purposes of this section, with respect to a teacher, "nonprovisional license" means an entrance, continuing, or life license initial, standard, or master teacher license as defined in section 122A.18.  With respect to a principal, "license" means an initial, standard, or master principal license as defined in section 122A.14.

 

Sec. 11.  Minnesota Statutes 2008, section 122A.40, subdivision 5, is amended to read:

 

Subd. 5.  Probationary period.  (a) The first three consecutive years of a teacher's first teaching experience in Minnesota in a single district is deemed to be a probationary period of employment, and after completion thereof, the probationary period in each district in which the teacher is thereafter employed shall be one year.  The school board must adopt a plan for written evaluation of teachers during the probationary period that complies with section 122A.411.  Evaluation must occur at least three times each year for a teacher performing services on 120 or more school days, at least two times each year for a teacher performing services on 60 to 119 school days, and at least one time each year for a teacher performing services on fewer than 60 school days.  Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school must not be included in determining the number of school days on which a teacher performs services.  Except as otherwise provided in paragraph (b), during the probationary period any annual contract with any teacher may or may not be renewed as the school board shall see fit.  However, the board must give any such teacher whose contract it declines to renew for the following school year written notice to that effect before July 1.  If the teacher requests reasons for any nonrenewal of a teaching contract, the board must give the teacher its reason in writing, including a statement that appropriate supervision was furnished describing the nature and the extent of such supervision furnished the teacher during the employment by the board, within ten days after receiving such request.  The school board may, after a hearing held upon due notice, discharge a teacher during the probationary period for cause, effective immediately, under section 122A.44.

 

(b) A board must discharge a probationary teacher, effective immediately, upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's license has been revoked due to a conviction for child abuse or sexual abuse.

 

(c) A probationary teacher whose first three years of consecutive employment are interrupted for active military service and who promptly resumes teaching consistent with federal reemployment timelines for uniformed service personnel under United States Code, title 38, section 4312(e), is considered to have a consecutive teaching experience for purposes of paragraph (a).

 

(d) A probationary teacher must complete at least 60 days of teaching service each year during the probationary period.  Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school do not count as days of teaching service under this paragraph.

 

(e) The district's determination to issue a contract to a probationary teacher must be based on the following factors:

 

(1) a portfolio of the teacher's professional growth plan based on standards of professional practice, student learning, and successful teacher evaluations that comply with section 122A.411, conducted at least three times per year;

 

(2) measures of student achievement, including at least 35 percent linked to student achievement growth under section 120B.35 or another standardized student assessment approved by the commissioner; and

 

(3) other locally selected criteria aligned to best instructional practices in teaching and learning.


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Sec. 12.  Minnesota Statutes 2009 Supplement, section 122A.40, subdivision 6, is amended to read:

 

Subd. 6.  Mentoring for probationary teachers.  (a) A school board and an exclusive representative of the teachers in the district must develop a probationary teacher peer review process through joint agreement.  The process may shall include having trained observers serve as mentors or coaches or having teachers participate in professional learning communities.

 

(b) Districts shall provide support to teachers throughout their probationary period to ensure new teachers are successfully building their portfolio to meet continuing tenure requirements.  The support to new teachers shall include:

 

(1) professional learning driven by standards of professional practice to improve teaching and reflection on practice, including an orientation process introducing the new teacher to the district, school, and teaching assignment;

 

(2) training to promote professional growth and differentiation based on teacher and student needs;

 

(3) trained mentors provided with opportunities to meet with the new teacher for coaching, collaboration, and reflection on practice; to assist in implementation of professional growth plans; and to conduct formative assessments and observations to measure new teachers' development and to be utilized in improvement of teaching; and

 

(4) development of the new teacher's professional growth plan based on standards of professional practice, student learning, and teacher evaluations conducted at least three times per year pursuant to the objective evaluation program described in subdivision 5, paragraph (a).

 

Sec. 13.  Minnesota Statutes 2008, section 122A.40, is amended by adding a subdivision to read:

 

Subd. 7b.  Teacher continuing tenure system.  (a) The teacher continuing tenure system is established:

 

(1) to require teacher employment and continuation of that employment at least every five years based on evidence of satisfactory academic achievement growth of students aligned to the requirements under section 124D.411;

 

(2) to support teachers' professional growth and responsibility in improving the academic achievement growth of students; and

 

(3) to encourage teachers to undertake challenging assignments.

 

(b) After the completion of the initial three-year probationary period, without discharge, teachers who are thereupon reemployed shall continue in service and hold their respective position during good behavior and efficient and competent service for periods of five years.  The terms and conditions of a teacher's employment contract, including salary and salary increases, must be based either on the length of the school year or an extended school calendar under section 120A.415.

 

(c) At the end of every five years of a teacher's service, the school district must either continue or terminate a teacher's service to the district.  The district's continuing tenure determination must be based on the following factors:

 

(1) a portfolio of the teacher's five-year professional growth plan based on standards of professional practice, student learning, and successful teacher evaluations that comply with section 122A.411, conducted at least three times per year;


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(2) measures of student achievement, including at least 35 percent linked to student achievement growth under section 120B.35 or another standardized student assessment approved by the commissioner; and

 

(3) other locally selected criteria aligned to best instructional practices in teaching and learning.

 

(d) The school board shall give teachers notice in writing before July 1 of renewal or termination of employment.

 

(e) A teacher not recommended for continuing tenure by the district shall have the right to request a hearing pursuant to this section.

 

Sec. 14.  Minnesota Statutes 2009 Supplement, section 122A.40, subdivision 8, is amended to read:

 

Subd. 8.  Peer coaching for continuing contract teachers.  (a) A school board and an exclusive representative of the teachers in the district shall develop a peer review process for continuing contract teachers through joint agreement.  The process may include having trained observers serve as peer coaches or having teachers participate in professional learning communities.

 

(b) Districts shall provide support to teachers to ensure teachers' professional growth through:

 

(1) professional learning driven by standards of professional practice to improve teaching and reflection on practice;

 

(2) training to promote professional growth and differentiation based on teacher and student needs; and

 

(3) a five-year professional growth plan focused on teachers' growth linked to standards of professional practice, student learning, and successful teacher evaluations that comply with section 122A.411, conducted at least three times per year.

 

Sec. 15.  Minnesota Statutes 2008, section 122A.40, subdivision 9, is amended to read:

 

Subd. 9.  Grounds for termination.  A continuing contract may be terminated, effective at the close of the school year, upon any of the following grounds:

 

(a) Inefficiency;

 

(b) Neglect of duty, or persistent violation of school laws, rules, regulations, or directives;

 

(c) Conduct unbecoming a teacher which materially impairs the teacher's educational effectiveness;

 

(d) Other good and sufficient grounds rendering the teacher unfit to perform the teacher's duties.; and

 

(e) The teacher is not recommended by the district for continuing tenure pursuant to this section.

 

A contract must not be terminated upon one of the grounds specified in clause (a), (b), (c), or (d), or (e) unless the teacher fails to correct the deficiency after being given written notice of the specific items of complaint and reasonable time within which to remedy them.

 

Sec. 16.  Minnesota Statutes 2008, section 122A.40, subdivision 10, is amended to read:

 

Subd. 10.  Negotiated unrequested leave of absence.  The school board and the exclusive bargaining representative of the teachers may negotiate a plan providing for unrequested leave of absence without pay or fringe benefits for as many teachers as may be necessary because of discontinuance of position, lack of pupils, financial


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limitations, or merger of classes caused by consolidation of districts.  Failing to successfully negotiate such a plan, the provisions of subdivision 11 shall apply.  The negotiated plan must not include provisions which would result in the exercise of seniority by a teacher holding a provisional an initial license, other than a vocational education license, contrary to the provisions of subdivision 11, clause (c), or the reinstatement of a teacher holding a provisional an initial license, other than a vocational education license, contrary to the provisions of subdivision 11, clause (e).  The provisions of section 179A.16 do not apply for the purposes of this subdivision. 

 

Sec. 17.  Minnesota Statutes 2008, section 122A.40, subdivision 11, is amended to read:

 

Subd. 11.  Unrequested leave of absence.  The board may place on unrequested leave of absence, without pay or fringe benefits, as many teachers as may be necessary because of discontinuance of position, lack of pupils, financial limitations, or merger of classes caused by consolidation of districts.  The unrequested leave is effective at the close of the school year.  In placing teachers on unrequested leave, the board is governed by the following provisions:

 

(a) The board may place probationary teachers on unrequested leave first in the inverse order of their employment.  A teacher who has acquired continuing contract rights must not be placed on unrequested leave of absence while probationary teachers are retained in positions for which the teacher who has acquired continuing contract rights is licensed;

 

(b) Teachers who have acquired continuing contract rights shall be placed on unrequested leave of absence in fields in which they are licensed in the inverse order in which they were employed by the school district.  In the case of equal seniority, the order in which teachers who have acquired continuing contract rights shall be placed on unrequested leave of absence in fields in which they are licensed is negotiable;

 

(c) Notwithstanding the provisions of clause (b), a teacher is not entitled to exercise any seniority when that exercise results in that teacher being retained by the district in a field for which the teacher holds only a provisional an initial license, as defined by the board of teaching, unless that exercise of seniority results in the placement on unrequested leave of absence of another teacher who also holds a provisional an initial license in the same field.  The provisions of this clause do not apply to vocational education licenses;

 

(d) Notwithstanding clauses (a), (b) and (c), if the placing of a probationary teacher on unrequested leave before a teacher who has acquired continuing rights, the placing of a teacher who has acquired continuing contract rights on unrequested leave before another teacher who has acquired continuing contract rights but who has greater seniority, or the restriction imposed by the provisions of clause (c) would place the district in violation of its affirmative action program, the district may retain the probationary teacher, the teacher with less seniority, or the provisionally initial licensed teacher;

 

(e) Teachers placed on unrequested leave of absence must be reinstated to the positions from which they have been given leaves of absence or, if not available, to other available positions in the school district in fields in which they are licensed.  Reinstatement must be in the inverse order of placement on leave of absence.  A teacher must not be reinstated to a position in a field in which the teacher holds only a provisional an initial license, other than a vocational education license, while another teacher who holds a nonprovisional standard or master license in the same field remains on unrequested leave.  The order of reinstatement of teachers who have equal seniority and who are placed on unrequested leave in the same school year is negotiable;

 

(f) Appointment of a new teacher must not be made while there is available, on unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the teacher fails to advise the school board within 30 days of the date of notification that a position is available to that teacher who may return to employment and assume the duties of the position to which appointed on a future date determined by the board;


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(g) A teacher placed on unrequested leave of absence may engage in teaching or any other occupation during the period of this leave;

 

(h) The unrequested leave of absence must not impair the continuing contract rights of a teacher or result in a loss of credit for previous years of service;

 

(i) The unrequested leave of absence of a teacher who is placed on unrequested leave of absence and who is not reinstated shall continue for a period of five years, after which the right to reinstatement shall terminate.  The teacher's right to reinstatement shall also terminate if the teacher fails to file with the board by April 1 of any year a written statement requesting reinstatement;

 

(j) The same provisions applicable to terminations of probationary or continuing contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of absence;

 

(k) Nothing in this subdivision shall be construed to impair the rights of teachers placed on unrequested leave of absence to receive unemployment benefits if otherwise eligible.

 

Sec. 18.  Minnesota Statutes 2008, section 122A.41, subdivision 1, is amended to read:

 

Subdivision 1.  Words, terms, and phrases.  Unless the language or context clearly indicates that a different meaning is intended, the following words, terms, and phrases, for the purposes of the following subdivisions in this section shall be defined as follows:

 

(a) Teachers.  The term "teacher" includes every person regularly employed, as a principal, or to give instruction in a classroom, or to superintend or supervise classroom instruction, or as placement teacher and visiting teacher.  Persons regularly employed as counselors and school librarians shall be covered by these sections as teachers if licensed as teachers or as school librarians. 

 

(b) School board.  The term "school board" includes a majority in membership of any and all boards or official bodies having the care, management, or control over public schools. 

 

(c) Demote.  The word "demote" means to reduce in rank or to transfer to a lower branch of the service or to a position carrying a lower salary or compensation. 

 

(d) Nonprovisional license Licenses defined.  For purposes of this section, with respect to a teacher, "nonprovisional license" shall mean an entrance, continuing, or life license means an initial, standard, or master teacher license as defined in section 122A.18.  With respect to a principal, "license" means an initial, standard, or master principal license as defined in section 122A.14. 

 

Sec. 19.  Minnesota Statutes 2008, section 122A.41, subdivision 2, is amended to read:

 

Subd. 2.  Probationary period; discharge or demotion.  (a) All teachers in the public schools in cities of the first class during the first three years of consecutive employment shall be deemed to be in a probationary period of employment during which period any annual contract with any teacher may, or may not, be renewed as the school board, after consulting with the peer review committee charged with evaluating the probationary teachers under subdivision 3, shall see fit.  The school site management team or the school board if there is no school site management team, shall adopt a plan for a written evaluation of teachers during the probationary period according to subdivision 3 that complies with section 122A.411.  Evaluation by the peer review committee charged with evaluating probationary teachers under subdivision 3 shall occur at least three times each year for a teacher performing services on 120 or more school days, at least two times each year for a teacher performing services on 60 to 119 school days, and at least one time each year for a teacher performing services on fewer than 60 school days. 


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Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school shall not be included in determining the number of school days on which a teacher performs services.  The school board may, during such probationary period, discharge or demote a teacher for any of the causes as specified in this code.  A written statement of the cause of such discharge or demotion shall be given to the teacher by the school board at least 30 days before such removal or demotion shall become effective, and the teacher so notified shall have no right of appeal therefrom.

 

(b) A probationary teacher whose first three years of consecutive employment are interrupted for active military service and who promptly resumes teaching consistent with federal reemployment timelines for uniformed service personnel under United States Code, title 38, section 4312(e), is considered to have a consecutive teaching experience for purposes of paragraph (a).

 

(c) A probationary teacher must complete at least 60 days of teaching service each year during the probationary period.  Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school do not count as days of teaching service under this paragraph.

 

(d) The district's determination to issue a contract to a probationary teacher must be based on the following factors:

 

(1) a portfolio of the teacher's professional growth plan based on standards of professional practice, student learning, and successful teacher evaluations that comply with section 122A.411, conducted at least three times per year;

 

(2) measures of student achievement, including at least 35 percent linked to student achievement growth under section 120B.35 or another standardized student assessment approved by the commissioner; and

 

(3) other locally selected criteria aligned to best instructional practices in teaching and learning.

 

(e) The school board shall give teachers notice in writing before July 1 of renewal or termination of employment.

 

Sec. 20.  Minnesota Statutes 2009 Supplement, section 122A.41, subdivision 3, is amended to read:

 

Subd. 3.  Mentoring for probationary teachers.  (a) A board and an exclusive representative of the teachers in the district must develop a probationary teacher peer review process through joint agreement.  The process may include having trained observers serve as mentors or coaches or having teachers participate in professional learning communities.

 

(b) Districts shall provide support to teachers throughout their probationary period to ensure new teachers are successfully building their portfolio to meet continuing tenure requirements.  The support to new teachers shall include:

 

(1) professional learning driven by standards of professional practice to improve teaching and reflection on practice, including an orientation process introducing the new teacher to the district, school, and teaching assignment;

 

(2) training to promote professional growth and differentiation based on teacher and student needs;

 

(3) trained mentors provided with opportunities to meet with the new teacher for coaching, collaboration, and reflection on practice; to assist in implementation of professional growth plans; and to conduct formative assessments and observations to measure new teachers' development and to be utilized in improvement of teaching; and


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(4) development of the new teacher's professional growth plan based on standards of professional practice, student learning, and teacher evaluations, conducted at least three times per year pursuant to the objective evaluation program described in subdivision 2, paragraph (a).

 

Sec. 21.  Minnesota Statutes 2008, section 122A.41, subdivision 4, is amended to read:

 

Subd. 4.  Period of service after probationary period; discharge or demotion Teacher continuing tenure system.  (a) The teacher continuing tenure system is established:

 

(1) to require teacher employment and continuation of that employment at least every five years based on evidence of satisfactory academic achievement growth of students aligned to the requirements under section 124D.411;

 

(2) to support teachers' professional growth and responsibility in improving the academic achievement growth of students; and

 

(3) to encourage teachers to undertake challenging assignments.

 

(b) After the completion of such the initial three-year probationary period, without discharge, such teachers as who are thereupon reemployed shall continue in service and hold their respective position during good behavior and efficient and competent service and must not be discharged or demoted except for cause after a hearing for periods of five years.  The terms and conditions of a teacher's employment contract, including salary and salary increases, must be based either on the length of the school year or an extended school calendar under section 120A.415. 

 

(b) A probationary teacher is deemed to have been reemployed for the ensuing school year, unless the school board in charge of such school gave such teacher notice in writing before July 1 of the termination of such employment.

 

(c) A teacher electing to have an employment contract based on the extended school calendar under section 120A.415 must participate in staff development training under subdivision 4a and shall receive an increased base salary. 

 

(c) At the end of every five years of a teacher's service, the school district must either continue or terminate a teacher's service to the district.  The district's continuing tenure determination must be based on the following factors:

 

(1) a portfolio of the teacher's five-year professional growth plan based on standards of professional practice, student learning, and successful teacher evaluations that comply with section 122A.411, conducted at least three times per year;

 

(2) measures of student achievement, including at least 35 percent linked to student achievement growth under section 120B.35 or another standardized student assessment approved by the commissioner; and

 

(3) other locally selected criteria aligned to best instructional practices in teaching and learning.

 

(d) The school board shall give teachers notice in writing before July 1 of renewal or termination of employment.

 

(e) A teacher not recommended for continuing tenure by the district shall have the right to request a hearing pursuant to this section.


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Sec. 22.  Minnesota Statutes 2009 Supplement, section 122A.41, subdivision 5, is amended to read:

 

Subd. 5.  Peer coaching for continuing contract teachers.  (a) A school board and an exclusive representative of the teachers in the district must develop a peer review process for nonprobationary teachers through joint agreement.  The process may include having trained observers serve as peer coaches or having teachers participate in professional learning communities.

 

(b) Districts shall provide support to teachers to ensure teachers' professional growth through:

 

(1) professional learning driven by standards of professional practice to improve teaching and reflection on practice;

 

(2) training to promote professional growth and differentiation based on teacher and student needs; and

 

(3) a five-year professional growth plan focused on teachers' growth linked to standards of professional practice, student learning, and successful teacher evaluations that comply with section 122A.411, conducted at least three times per year.

 

Sec. 23.  Minnesota Statutes 2008, section 122A.41, subdivision 6, is amended to read:

 

Subd. 6.  Grounds for discharge or demotion.  (a) Except as otherwise provided in paragraph (b), causes for the discharge or demotion of a teacher either during or after the probationary period must be:

 

(1) Immoral character, conduct unbecoming a teacher, or insubordination;

 

(2) Failure without justifiable cause to teach without first securing the written release of the school board having the care, management, or control of the school in which the teacher is employed;

 

(3) Inefficiency in teaching or in the management of a school;

 

(4) Affliction with active tuberculosis or other communicable disease must be considered as cause for removal or suspension while the teacher is suffering from such disability; or

 

(5) Discontinuance of position or lack of pupils.; or

 

(6) The teacher is not recommended by the district for continuing tenure pursuant to this section.

 

For purposes of this paragraph, conduct unbecoming a teacher includes an unfair discriminatory practice described in section 363A.13.  A contract must not be terminated upon the grounds specified in clause (6) unless the teacher fails to correct the deficiency after being given written notice of the specific items of complaint and reasonable time within which to remedy them.

 

(b) A probationary or continuing-contract teacher must be discharged immediately upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's license has been revoked due to a conviction for child abuse or sexual abuse. 

 

Sec. 24.  Minnesota Statutes 2008, section 122A.41, subdivision 14, is amended to read:

 

Subd. 14.  Services terminated by discontinuance or lack of pupils; preference given.  (a) A teacher whose services are terminated on account of discontinuance of position or lack of pupils must receive first consideration for other positions in the district for which that teacher is qualified.  In the event it becomes necessary to discontinue


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one or more positions, in making such discontinuance, teachers must be discontinued in any department in the inverse order in which they were employed, unless a board and the exclusive representative of teachers in the district negotiate a plan providing otherwise.

 

(b) Notwithstanding the provisions of clause (a), a teacher is not entitled to exercise any seniority when that exercise results in that teacher being retained by the district in a field for which the teacher holds only a provisional an initial license, as defined by the Board of Teaching, unless that exercise of seniority results in the termination of services, on account of discontinuance of position or lack of pupils, of another teacher who also holds a provisional an initial license in the same field.  The provisions of this clause do not apply to vocational education licenses.

 

(c) Notwithstanding the provisions of clause (a), a teacher must not be reinstated to a position in a field in which the teacher holds only a provisional an initial license, other than a vocational education license, while another teacher who holds a nonprovisional standard or master license in the same field is available for reinstatement.

 

Sec. 25.  [122A.411] STATEWIDE TEACHER AND PRINCIPAL EVALUATION. 

 

Subdivision 1.  Minnesota annual teacher appraisal system.  (a) The commissioner of education, in conjunction with the Minnesota annual teacher appraisal system task force, shall develop an annual review and appraisal process for probationary and continuing contract teachers holding any and all teaching licenses, including initial, standard, and master teaching licenses.  The annual review and appraisal process is required of all teachers employed by school districts and charter schools.  The annual review and appraisal process must be aligned to the best instructional practices in teaching and learning.

 

(b) The annual review and appraisal process must include, at a minimum:

 

(1) a written individual teacher appraisal aligned with the educational improvement plan under section 122A.413 and the staff development plan under section 122A.60;

 

(2) objective evaluations using multiple criteria conducted by a locally selected and periodically trained evaluation team that understands teaching and learning;

 

(3) measures of student achievement, including at least 35 percent linked to student achievement growth under section 120B.35 or another standardized student assessment approved by the commissioner; and

 

(4) other locally selected criteria aligned to best instructional practices in teaching and learning.

 

(c) The commissioner of education, in conjunction with the Minnesota annual teacher appraisal system task force, shall apply ratings to teachers annually, based on at least the following minimum scale:

 

(1) a teacher is considered "highly effective" if the teacher's portfolio shows evidence that the teacher's students, on average, experienced more than one year of growth on the statewide student academic achievement measures defined in section 120B.35 or another standardized student assessment approved by the commissioner and the teacher received a performance rating of "5" on the Minnesota annual teacher appraisal system evaluation rubric;

 

(2) a teacher is considered "effective" if the teacher's portfolio shows evidence that the teacher's students, on average, experienced at least one year of growth on the statewide student academic achievement measures defined in section 120B.35 or another standardized student assessment approved by the commissioner and the teacher received a performance rating of "3" or better on the Minnesota annual teacher appraisal system evaluation rubric;

 

(3) a teacher is considered in "needs improvement" if the teacher's portfolio shows evidence that the teacher's students, on average, experienced less than one year of growth on the statewide student academic achievement measures defined in section 120B.35 or another standardized assessment approved by the commissioner or the teacher received a performance rating of "2" or worse on the Minnesota annual teacher appraisal system evaluation rubric; and


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(4) a teacher is considered "ineffective" if the teacher's portfolio shows evidence that the teacher's students, on average, experienced low growth on the statewide student academic achievement measures defined in section 120B.35 or another standardized student assessment approved by the commissioner and the teacher received a performance rating of "1" on the Minnesota annual teacher appraisal system rubric.

 

(d) The commissioner of education, in conjunction with the Minnesota annual teacher appraisal system task force, shall develop, through joint agreement, a peer review and assistance system to provide support for the full spectrum of teaching, including support for teachers deemed both highly effective and ineffective, through the evaluation process under this section.  Teachers receiving an "ineffective" rating as defined in paragraph (c) shall be referred to peer assistance and review.

 

(e) The commissioner of education shall convene a task force of educators and stakeholders to develop a performance evaluation rubric based on standards of professional practice.  The Minnesota annual teacher appraisal system evaluation rubric shall have five performance ratings.  The task force shall submit a report to the commissioner of education and to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over kindergarten through grade 12 education policy and finance summarizing aggregated teacher appraisal data by state, district, school, subject, and level wherever there are sufficient individuals within a cohort to prevent violation of federal privacy law.  The task force shall submit the report to the commissioner and legislative committees and divisions with jurisdiction over kindergarten through grade 12 education policy and finance no later than December 15, 2010.

 

Subd. 2.  Minnesota annual principal appraisal system.  (a) The commissioner of education, in conjunction with the Minnesota annual principal appraisal system task force, shall develop an annual review and appraisal process for probationary and continuing contract principals holding any and all principal licenses.  The annual review and appraisal process must be aligned to the best instructional practices in school and instructional leadership.

 

(b) The annual review and appraisal process must include, at a minimum:

 

(1) a written individual principal appraisal aligned with the educational improvement plan under section 122A.413 and the staff development plan under section 122A.60;

 

(2) objective evaluations using multiple criteria conducted by a locally selected and periodically trained evaluation team that understands school and instructional leadership;

 

(3) evidence that, for reading and mathematics separately, the three-year average percentage of the principal's school's students making medium and high growth is equal to or greater than the percentage of students in the state making medium and high growth as defined in section 120B.299; and

 

(4) other locally selected criteria aligned to best instructional practices in instructional leadership, teaching, and learning.

 

(c) The commissioner of education, in conjunction with the Minnesota annual principal appraisal system task force, shall apply ratings to principals annually, based on at least the following minimum scale:

 

(1) a principal is considered "highly effective" if the principal's portfolio shows evidence that the school that the principal is leading is making at least one year of growth on the statewide student academic achievement measures defined in section 120B.35 or another standardized student assessment approved by the commissioner and the principal received a performance rating of "5" on the Minnesota annual principal appraisal system evaluation rubric;


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(2) a principal is considered "effective" if the principal's portfolio shows evidence that the school that the principal is leading is making at least one year of growth at the rate of the state average, on the statewide student academic achievement measures defined in section 120B.35 or another standardized student assessment approved by the commissioner and the principal received a performance rating of "3" or better on the Minnesota annual principal appraisal system evaluation rubric;

 

(3) a principal is considered in "needs improvement" if the principal's portfolio shows evidence that the school that the principal is leading is making growth that is less than the state average on the statewide student academic achievement measures defined in section 120B.35 or another standardized assessment approved by the commissioner or the principal received a performance rating of "2" or worse on the Minnesota annual principal appraisal system evaluation rubric; and

 

(4) a principal is considered "ineffective" if the principal's portfolio shows evidence of no growth on the statewide student academic achievement measures defined in section 120B.35 or another standardized student assessment approved by the commissioner and the principal received a performance rating of "1" on the Minnesota annual principal appraisal system rubric.

 

A principal cannot be rated as effective or better unless the principal has demonstrated satisfactory levels of student growth for the school that the principal leads.

 

(d) Principals receiving an "ineffective" rating as defined in paragraph (c) shall be referred to the Minnesota principals academy for remediation.

 

(e) The commissioner of education shall convene a task force of administrators and stakeholders to develop an evaluation rubric based on standards of professional practice.  The Minnesota annual principal appraisal system evaluation rubric shall have five performance ratings.  The task force shall submit a report to the commissioner of education and to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over kindergarten through grade 12 education policy and finance summarizing aggregated principal appraisal data by state, district, school, subject, and level wherever there are sufficient individuals within a cohort to prevent violation of federal privacy law.  The task force shall submit the report to the commissioner and legislative committees and divisions with jurisdiction over kindergarten through grade 12 education policy and finance no later than December 15, 2010.

 

Sec. 26.  Minnesota Statutes 2008, section 122A.413, as amended by Laws 2009, chapter 96, article 2, section 25, is amended to read:

 

122A.413 EDUCATIONAL IMPROVEMENT PLAN. 

 

Subdivision 1.  Qualifying plan.  A district or intermediate school district may develop an educational improvement plan for the purpose of qualifying for the alternative teacher and principal professional pay system under section 122A.414.  The plan must include measures for improving school district, intermediate school district, school site, teacher, principal, and individual student performance.

 

Subd. 2.  Plan components.  The educational improvement plan must be approved by the school board and have at least these elements:

 

(1) assessment and evaluation tools to measure student performance and progress;

 

(2) performance goals and benchmarks for improvement;

 

(3) measures of student attendance and completion rates;


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(4) a rigorous research and practice-based professional development system, based on national and state standards of effective teaching and principal practice and consistent with section 122A.60, that is aligned with educational improvement and designed to achieve ongoing and schoolwide progress and growth in teaching and principal practice;

 

(5) measures of student, family, and community involvement and satisfaction;

 

(6) a data system about students and their academic progress that provides parents and the public with understandable information;

 

(7) a teacher an induction and mentoring program for probationary teachers and principals that provides continuous learning and sustained teacher or principal support; and

 

(8) substantial participation by the exclusive representative of the teachers and principals in developing the plan.

 

Subd. 3.  School site accountability.  A district or intermediate school district that develops a plan under subdivisions 1 and 2 must ensure that each school site develops a board-approved educational improvement plan that is aligned with the district educational improvement plan under subdivision 2 and developed with the exclusive representative of the teachers and principals.  While a site plan must be consistent with the district educational improvement plan, it may establish performance goals and benchmarks that meet or exceed those of the district.

 

Sec. 27.  Minnesota Statutes 2008, section 122A.414, as amended by Laws 2009, chapter 96, article 2, section 26, is amended to read:

 

122A.414 ALTERNATIVE TEACHER PAY. 

 

Subdivision 1.  Restructured pay system.  A restructured alternative teacher and principal professional pay system is established under subdivision 2 to provide incentives to encourage teachers and principals to improve their knowledge and instructional skills in order to improve student learning and for school districts, intermediate school districts, and charter schools to recruit and retain highly qualified teachers and principals, encourage highly qualified teachers and principals to undertake challenging assignments, and support teachers' and principals' roles in improving students' educational achievement.

 

Subd. 1a.  Transitional planning year.  (a) To be eligible to participate in an alternative teacher and principal professional pay system, a school district, intermediate school district, or site, at least one school year before it expects to fully implement an alternative pay system, must:

 

(1) submit to the department a letter of intent executed by the school district or intermediate school district and the exclusive representative of the teachers and principals to complete a plan preparing for full implementation, consistent with subdivision 2, that may include, among other activities, training to evaluate teacher and principal performance, a restructured school day to develop integrated ongoing site-based professional development activities, release time to develop an alternative pay system agreement, and teacher, principal, and staff training on using multiple data sources; and

 

(2) agree to use up to two percent of basic revenue for staff development purposes, consistent with sections 122A.60 and 122A.61, to develop the alternative teacher and principal professional pay system agreement under this section.

 

(b) To be eligible to participate in an alternative teacher and principal professional pay system, a charter school, at least one school year before it expects to fully implement an alternative pay system, must:


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(1) submit to the department a letter of intent executed by the charter school and the charter school board of directors;

 

(2) submit the record of a formal vote by the teachers employed at the charter school indicating at least 70 percent of all teachers agree to implement the alternative pay system; and

 

(3) agree to use up to two percent of basic revenue for staff development purposes, consistent with sections 122A.60 and 122A.61, to develop the alternative teacher and principal professional pay system.

 

(c) The commissioner may waive the planning year if the commissioner determines, based on the criteria under subdivision 2, that the school district, intermediate school district, site or charter school is ready to fully implement an alternative pay system.

 

Subd. 2.  Alternative teacher and principal professional pay system.  (a) To participate in this program, a school district, intermediate school district, school site, or charter school must have an educational improvement plan under section 122A.413 and an alternative teacher and principal professional pay system agreement under paragraph (b).  A charter school participant also must comply with subdivision 2a.

 

(b) The alternative teacher and principal professional pay system agreement must:

 

(1) describe how teachers can achieve career advancement and how teachers and principals can achieve additional compensation;

 

(2) describe how the school district, intermediate school district, school site, or charter school will provide teachers with career advancement options that allow teachers to retain primary roles in student instruction and facilitate site-focused professional development that helps other teachers improve their skills;

 

(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation paid before implementing the pay system from being reduced as a result of participating in this system, and base at least 60 percent of any compensation increase on teacher performance using:

 

(i) schoolwide student achievement gains under section 120B.35 or locally selected standardized assessment outcomes, or both;

 

(ii) measures of student achievement, including at least 35 percent linked to student achievement growth under section 120B.35 or another standardized student assessment approved by the commissioner; and

 

(iii) an objective evaluation program aligned with section 122A.411 that includes:

 

(A) individual teacher evaluations aligned with the educational improvement plan under section 122A.413 and the staff development plan under section 122A.60; and

 

(B) objective evaluations using multiple criteria conducted by a locally or regionally selected and periodically trained evaluation team that understands teaching and learning;

 

(4) prevent any principal's compensation paid before implementing the pay system from being reduced as a result of participating in this system, and base at least 60 percent of any compensation increase on performance using:

 

(i) schoolwide student achievement gains under section 120B.35 or locally selected standardized assessment outcomes, or both;


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(ii) measures of student achievement; and

 

(iii) an objective evaluation program aligned with section 122A.411 that includes:

 

(A) individual principal evaluations aligned with the educational improvement plan under section 122A.413 and the staff development plan under section 122A.60;

 

(B) objective evaluations using multiple criteria conducted by a locally or regionally selected and periodically trained evaluation team that understands teaching and learning; and

 

(C) a peer review and assistance system to provide support for the full spectrum of teaching, including support for teachers and principals deemed both effective and ineffective, through the evaluation process under section 122A.411;

 

(4) (5) provide integrated ongoing site-based professional development activities to improve instructional skills and learning that are aligned with student needs under section 122A.413, consistent with the staff development plan under section 122A.60 and led during the school day by trained teacher leaders such as master or mentor teachers;

 

(5) (6) allow any teacher in a participating school district, intermediate school district, school site, or charter school that implements an alternative pay system to participate in that system without any quota or other limit; and

 

(6) (7) encourage collaboration rather than competition among teachers and principals.

 

Subd. 2a.  Charter school applications.  For charter school applications, the board of directors of a charter school that satisfies the conditions under subdivisions 2 and 2b must submit to the commissioner an application that contains:

 

(1) an agreement to implement an alternative teacher and principal professional pay system under this section;

 

(2) a resolution by the charter school board of directors adopting the agreement; and

 

(3) the record of a formal vote by the teachers employed at the charter school indicating that at least 70 percent of all teachers agree to implement the alternative teacher and principal professional pay system, unless the charter school submits an alternative teacher and principal professional pay system agreement under this section before the first year of operation.

 

Alternative compensation revenue for a qualifying charter school must be calculated under section 126C.10, subdivision 34, paragraphs (a) and (b).

 

Subd. 2b.  Approval process.  (a) Consistent with the requirements of this section and sections 122A.413 and 122A.415, the department must prepare and transmit to interested school districts, intermediate school districts, school sites, and charter schools a standard form for applying to participate in the alternative teacher and principal professional pay system.  The commissioner annually must establish three dates as deadlines by which interested applicants must submit an application to the commissioner under this section.  An interested school district, intermediate school district, school site, or charter school must submit to the commissioner a completed application executed by the district superintendent and the exclusive bargaining representative of the teachers and principals if the applicant is a school district, intermediate school district, or school site, or executed by the charter school board of directors if the applicant is a charter school.  The application must include the proposed alternative teacher and principal professional pay system agreement under subdivision 2.  The department must review a completed application within 30 days of the most recent application deadline and recommend to the commissioner whether to approve or disapprove the application.  The commissioner must approve applications on a first-come, first-served


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basis.  The applicant's alternative teacher and principal professional pay system agreement must be legally binding on the applicant and the collective bargaining representative representatives before the applicant receives alternative compensation revenue.  The commissioner must approve or disapprove an application based on the requirements under subdivisions 2 and 2a.

 

(b) If the commissioner disapproves an application, the commissioner must give the applicant timely notice of the specific reasons in detail for disapproving the application.  The applicant may revise and resubmit its application and related documents to the commissioner within 30 days of receiving notice of the commissioner's disapproval and the commissioner must approve or disapprove the revised application, consistent with this subdivision.  Applications that are revised and then approved are considered submitted on the date the applicant initially submitted the application.

 

Subd. 3.  Report; continued funding.  (a) Participating districts, intermediate school districts, school sites, and charter schools must report on the implementation and effectiveness of the alternative teacher and principal professional pay system, particularly addressing each requirement under subdivision 2 and make annual recommendations by June 15 to their school boards.  The school board or board of directors shall transmit a copy of the report with a summary of the findings and recommendations of the district, intermediate school district, school site, or charter school to the commissioner.

 

(b) If the commissioner determines that a school district, intermediate school district, school site, or charter school that receives alternative teacher and principal compensation revenue is not complying with the requirements of this section, the commissioner may withhold funding from that participant.  Before making the determination, the commissioner must notify the participant of any deficiencies and provide the participant an opportunity to comply.

 

Subd. 4.  Planning and staff development.  A school district that qualifies to participate in the alternative teacher and principal professional pay system transitional planning year under subdivision 1a may use up to two percent of basic revenue that would otherwise be reserved under section 122A.61 for complying with the planning and staff development activities under this section.

 

Sec. 28.  Minnesota Statutes 2008, section 122A.60, as amended by Laws 2009, chapter 96, article 2, section 28, is amended to read:

 

122A.60 STAFF DEVELOPMENT PROGRAM. 

 

Subdivision 1.  Staff development committee.  A school board must use the revenue authorized in section 122A.61 for in-service education for programs under section 120B.22, subdivision 2, or for staff development and teacher and principal training plans under this section.  The board must establish an advisory staff development committee to develop the plan, assist site professional development teams in developing a site plan consistent with the goals of the plan, and evaluate staff development efforts at the site level.  A majority of the advisory committee and the site professional development team must be teachers and principals representing various grade levels, subject areas, and special education.  The advisory committee must also include nonteaching staff, parents, and administrators.

 

Subd. 1a.  Effective staff development activities.  (a) Staff development activities must be aligned with the district and school site staff development plans, based on student achievement data, focused on student learning goals, and used in the classroom setting.  Activities must:

 

(1) focus on the school classroom and research-based scientifically based research strategies that improve student learning;


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(2) provide opportunities for teachers to practice and improve their instructional skills over time and receive instruction-based observations using objective standards-based assessments to assist in the professional growth process;

 

(3) provide regular and ongoing opportunities for teachers and principals to use student data as part of their daily work to increase student achievement;

 

(4) enhance teacher and principal content knowledge and instructional skills;

 

(5) align with state and local academic standards;

 

(6) provide job-embedded, integrated professional development opportunities during teacher and principal contract day to build professional relationships, foster collaboration among principals and staff who provide instruction to identify instructional strategies to meet student learning goals, plan for instruction, practice new teaching strategies, review the results of implementing strategies, and provide opportunities for teacher-to-teacher and principal-to-principal coaching and mentoring; and

 

(7) align with the plan of the district or site for an alternative teacher professional pay system those participating in an alternative teacher and principal professional pay system under section 122A.414.

 

Staff development activities may also include curriculum development and curriculum training programs, and activities that provide teachers and principals and other members of site-based teams training to enhance team performance.  The school district also may implement other staff development activities required by law and activities associated with professional teacher and principal compensation models.

 

(b) Release time provided for teachers to supervise students on field trips and school activities, or independent tasks not associated with enhancing the teacher's knowledge and instructional skills, such as preparing report cards, calculating grades, or organizing classroom materials, may not be counted as staff development time that is financed with staff development reserved revenue under section 122A.61.

 

Subd. 2.  Contents of plan.  The plan must be based on student achievement and include student learning goals, the staff development outcomes under subdivision 3, the means to achieve the outcomes, and procedures for evaluating progress at each school site toward meeting education outcomes, consistent with relicensure requirements under section 122A.18, subdivision 2, paragraph (b).  The plan also must:

 

(1) support stable and productive professional communities achieved through ongoing and schoolwide progress and growth in teaching practice;

 

(2) emphasize coaching, professional learning communities, classroom action research, and other job-embedded models;

 

(3) maintain a strong subject matter focus premised on students' learning goals;

 

(4) ensure specialized preparation and learning about issues related to teaching students with special needs and limited English proficiency; and

 

(5) reinforce national and state standards of effective teaching practice.

 

Subd. 3.  Staff development outcomes.  The advisory staff development committee must adopt a staff development plan for increasing teacher and principal effectiveness and improving student achievement.  The plan must be consistent with education outcomes that the school board determines.  The plan must include ongoing staff development activities that contribute toward continuous improvement in achievement of the following goals:


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(1) improve student achievement of state and local education standards in all areas of the curriculum by using best practices methods and scientifically based research;

 

(2) effectively meet the needs of a diverse student population, including at-risk children, children with disabilities, and gifted children, within the regular classroom and other settings;

 

(3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse student population that is consistent with the state education diversity rule and the district's education diversity plan;

 

(4) improve staff collaboration and develop mentoring and peer coaching programs for teachers new to the school or district and principals in their first five years;

 

(5) effectively teach and model violence prevention policy and curriculum that address early intervention alternatives, issues of harassment, and teach nonviolent alternatives for conflict resolution; and

 

(6) provide teachers and other members of site-based management teams with appropriate management and financial management skills.

 

Subd. 4.  Staff development report.  (a) By October 15 1 of each year, the district and site staff development committees shall write and submit a report of staff development activities and expenditures for the previous year, in the form and manner determined by the commissioner.  The report, signed by the district superintendent and staff development chair, must include assessment and evaluation data indicating progress toward district and site staff development goals based on teaching and learning outcomes, including the percentage of teachers and other staff involved in instruction who participate in effective staff development activities under subdivision 3.

 

(b) The report must break down expenditures for:

 

(1) curriculum development and curriculum training programs; and

 

(2) staff development training models, workshops, and conferences, and the cost of releasing teachers or providing substitute teachers for staff development purposes.

 

The report also must indicate whether the expenditures were incurred at the district level or the school site level, and whether the school site expenditures were made possible by grants to school sites that demonstrate exemplary use of allocated staff development revenue.  These expenditures must be reported using the uniform financial and accounting and reporting standards.

 

(c) The commissioner shall report the staff development progress and expenditure data to the house of representatives and senate committees having jurisdiction over education by February 15 each year.

 

Sec. 29.  Minnesota Statutes 2008, section 122A.61, subdivision 1, is amended to read:

 

Subdivision 1.  Staff development revenue.  A district is required to reserve an amount equal to at least two percent of the basic revenue under section 126C.10, subdivision 2, for in-service education for programs under section 120B.22, subdivision 2, for with the primary purpose of creating and implementing district and school site staff development plans, including.  Funds may also be used to support plans for challenging instructional activities and experiences under section 122A.60, and for curriculum development and programs, other in-service education, teachers' workshops, teacher conferences, the cost of substitute teachers staff development purposes, preservice and in-service education for special education professionals and paraprofessionals, and other related costs for staff development efforts.  A district may annually waive the requirement to reserve their basic revenue under this section if a majority vote of the licensed teachers in the district and a majority vote of the school board agree to a resolution


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to waive the requirement.  A district in statutory operating debt is exempt from reserving basic revenue according to this section.  Districts may expend an additional amount of unreserved revenue for staff development based on their needs.  With the exception of amounts reserved for staff development from revenues allocated directly to school sites, the board must initially allocate 50 percent of the reserved revenue to each school site in the district on a per teacher basis, which must be retained by the school site until used.  The board may retain 25 percent to be used for district wide staff development efforts.  The remaining 25 percent of the revenue must be used to make grants to school sites for best practices methods.  A grant may be used for any purpose authorized under section 120B.22, subdivision 2, 122A.60, or for the costs of curriculum development and programs, other in-service education, teachers' workshops, teacher conferences, substitute teachers for staff development purposes, and other staff development efforts, and determined by the site professional development team.  The site professional development team must demonstrate to the school board the extent to which staff at the site have met the outcomes of the program.  The board may withhold a portion of initial allocation of revenue if the staff development outcomes are not being met. 

 

Sec. 30.  Minnesota Statutes 2008, section 123B.09, subdivision 8, is amended to read:

 

Subd. 8.  Duties.  The board must superintend and manage the schools of the district; adopt rules for their organization, government, and instruction; keep registers; and prescribe textbooks and courses of study.  The board may enter into an agreement with a postsecondary institution for secondary or postsecondary nonsectarian courses to be taught at a secondary school, nonsectarian postsecondary institution, or another location.  The board must not enter into an agreement which limits a district superintendent's duty to assign and reassign teachers or administrators to the schools in which the teachers will teach or the administrators will administer.

 

Sec. 31.  Minnesota Statutes 2009 Supplement, section 123B.143, subdivision 1, is amended to read:

 

Subdivision 1.  Contract; duties.  All districts maintaining a classified secondary school must employ a superintendent who shall be an ex officio nonvoting member of the school board.  The authority for selection and employment of a superintendent must be vested in the board in all cases.  An individual employed by a board as a superintendent shall have an initial employment contract for a period of time no longer than three years from the date of employment.  Any subsequent employment contract must not exceed a period of three years.  A board, at its discretion, may or may not renew an employment contract.  A board must not, by action or inaction, extend the duration of an existing employment contract.  Beginning 365 days prior to the expiration date of an existing employment contract, a board may negotiate and enter into a subsequent employment contract to take effect upon the expiration of the existing contract.  A subsequent contract must be contingent upon the employee completing the terms of an existing contract.  If a contract between a board and a superintendent is terminated prior to the date specified in the contract, the board may not enter into another superintendent contract with that same individual that has a term that extends beyond the date specified in the terminated contract.  A board may terminate a superintendent during the term of an employment contract for any of the grounds specified in section 122A.40, subdivision 9 or 13.  A superintendent shall not rely upon an employment contract with a board to assert any other continuing contract rights in the position of superintendent under section 122A.40.  Notwithstanding the provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no individual shall have a right to employment as a superintendent based on order of employment in any district.  If two or more districts enter into an agreement for the purchase or sharing of the services of a superintendent, the contracting districts have the absolute right to select one of the individuals employed to serve as superintendent in one of the contracting districts and no individual has a right to employment as the superintendent to provide all or part of the services based on order of employment in a contracting district.  The superintendent of a district shall perform the following:

 

(1) visit and supervise the schools in the district, report and make recommendations about their condition when advisable or on request by the board;


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12459


 

(2) recommend to the board employment and dismissal of teachers;

 

(3) before the start of the school year, and at other times as needed, assign highly effective teachers and administrators, as defined in section 122A.411, to schools to best meet student and school needs as determined by the superintendent;

 

(3) (4) superintend school grading practices and examinations for promotions;

 

(4) (5) make reports required by the commissioner; and

 

(5) (6) perform other duties prescribed by the board.

 

For purposes of this section, "school" includes a public school under section 120A.22, subdivision 4, or a nonpublic school under section 120A.22, subdivision 4, that elects to comply with this section, and charter schools under section 124D.10.

 

Sec. 32.  Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 4, is amended to read:

 

Subd. 4.  Formation of school.  (a) An authorizer, after receiving an application from a school developer, may charter a licensed teacher under section 122A.18, subdivision 1, or a group of individuals that includes one or more licensed teachers under section 122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the authorizer's affidavit under paragraph (b).  The school must be organized and operated as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and the provisions under the applicable chapter shall apply to the school except as provided in this section.

 

Notwithstanding sections 465.717 and 465.719, a school district, subject to this section and section 124D.11, may create a corporation for the purpose of establishing a charter school.

 

(b) Before the operators may establish and operate a school, the authorizer must file an affidavit with the commissioner stating its intent to charter a school.  An authorizer must file a separate affidavit for each school it intends to charter.  The affidavit must state the terms and conditions under which the authorizer would charter a school and how the authorizer intends to oversee the fiscal and student performance of the charter school and to comply with the terms of the written contract between the authorizer and the charter school board of directors under subdivision 6.  The commissioner must approve or disapprove the authorizer's affidavit within 60 business days of receipt of the affidavit.  If the commissioner disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business days to address the deficiencies.  If the authorizer does not address deficiencies to the commissioner's satisfaction, the commissioner's disapproval is final.  Failure to obtain commissioner approval precludes an authorizer from chartering the school that is the subject of this affidavit.

 

(c) The authorizer may prevent an approved charter school from opening for operation if, among other grounds, the charter school violates this section or does not meet the ready-to-open standards that are part of the authorizer's oversight and evaluation process or are stipulated in the charter school contract.

 

(d) The operators authorized to organize and operate a school, before entering into a contract or other agreement for professional or other services, goods, or facilities, must incorporate as a cooperative under chapter 308A or as a nonprofit corporation under chapter 317A and must establish a board of directors composed of at least five members who are not related parties until a timely election for members of the ongoing charter school board of directors is held according to the school's articles and bylaws under paragraph (f).  A charter school board of directors must be composed of at least five members who are not related parties.  Staff members employed at the school, including teachers providing instruction under a contract with a cooperative, and all parents or legal guardians of children


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12460


 

enrolled in the school are the voters eligible to elect the members of the school's board of directors.  A charter school must notify eligible voters of the school board election dates at least 30 days before the election.  Board of director meetings must comply with chapter 13D.

 

(e) Upon the request of an individual, the charter school must make available in a timely fashion the minutes of meetings of the board of directors, and of members and committees having any board-delegated authority; financial statements showing all operations and transactions affecting income, surplus, and deficit during the school's last annual accounting period; and a balance sheet summarizing assets and liabilities on the closing date of the accounting period.  A charter school also must post on its official Web site information identifying its authorizer and indicate how to contact that authorizer and include that same information about its authorizer in other school materials that it makes available to the public.

 

(f) Every charter school board member shall attend department-approved training on board governance, the board's role and responsibilities, employment policies and practices, and financial management.  A board member who does not begin the required training within six months of being seated and complete the required training within 12 months of being seated on the board is ineligible to continue to serve as a board member.

 

(g) The ongoing board must be elected before the school completes its third year of operation.  Board elections must be held during a time when school is in session.  The charter school board of directors shall be composed of at least five nonrelated members and include:  (i) at least one licensed teacher employed at the school or a licensed teacher providing instruction under a contact between the charter school and a cooperative; (ii) the parent or legal guardian of a student enrolled in the charter school; and (iii) an interested community member who is not employed by the charter school and does not have a child enrolled in the school.  The board may be a teacher majority board composed of teachers described in this paragraph.  The chief financial officer and the chief administrator are ex-officio nonvoting board members.  Board bylaws shall outline the process and procedures for changing the board's governance model, consistent with chapter 317A.  A board may change its governance model only:

 

(1) by a majority vote of the board of directors and the licensed teachers employed by the school, including licensed teachers providing instruction under a contract between the school and a cooperative; and

 

(2) with the authorizer's approval.

 

Any change in board governance must conform with the board structure established under this paragraph.

 

(h) The granting or renewal of a charter by an authorizer must not be conditioned upon the bargaining unit status of the employees of the school.

 

(i) The granting or renewal of a charter school by an authorizer must not be contingent on the charter school being required to contract, lease, or purchase services from the authorizer.  Any potential contract, lease, or purchase of service from an authorizer must be disclosed to the commissioner, accepted through an open bidding process, and be a separate contract from the charter contract.  The school must document the open bidding process.  An authorizer must not enter into a contract to provide management and financial services for a school that it authorizes, unless the school documents that it received at least two competitive bids.

 

(j) An authorizer may permit the board of directors of a charter school to expand the operation of the charter school to additional sites or to add additional grades locations or grades at the school beyond those described in the authorizer's original affidavit as approved by the commissioner only after submitting a supplemental affidavit for approval to the commissioner in a form and manner prescribed by the commissioner.  The supplemental affidavit must show that:

 

(1) the expansion proposed by the charter school is supported by need and projected enrollment;


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12461


 

(2) the charter school expansion is warranted, at a minimum, by longitudinal data demonstrating students' improved academic performance and growth on statewide assessments under chapter 120B;

 

(3) the charter school is fiscally sound and has the financial capacity to implement the proposed expansion; and

 

(4) the authorizer finds that the charter school has the management capacity to carry out its expansion.

 

(k) Notwithstanding paragraph (j), an authorizer may permit the board of directors of a high-performing charter school to expand the existing charter to include a new separate school beyond that described in the authorizer's original affidavit as approved by the commissioner only after submitting a supplemental affidavit for approval to the commissioner in a form and manner prescribed by the commissioner.  A new separate school must conduct a separate lottery and enrollment process.  A supplemental affidavit must be submitted for each new separate school and show that:

 

(1) the new separate school proposed by the authorizer is supported by need and projected enrollment;

 

(2) the new separate school is warranted, at a minimum, by longitudinal data demonstrating the existing charter school's students' improved academic performance and growth on statewide assessments under chapter 120B;

 

(3) the existing charter school is fiscally sound and the charter school board has the capacity to implement and govern the new separate school; and

 

(4) the authorizer finds that the charter school board has capacity to carry out and oversee the new separate school.

 

(k) (l) The commissioner shall have 30 business days to review and comment on the supplemental affidavit.  The commissioner shall notify the authorizer of any deficiencies in the supplemental affidavit and the authorizer then has 30 business days to address, to the commissioner's satisfaction, any deficiencies in the supplemental affidavit.  The school may not expand grades or, add sites, or start a new separate school until the commissioner has approved the supplemental affidavit.  The commissioner's approval or disapproval of a supplemental affidavit is final.

 

Sec. 33.  Minnesota Statutes 2008, section 127A.05, is amended by adding a subdivision to read:

 

Subd. 7.  Authority to intervene.  The commissioner of education shall have the authority to intervene directly in the state's persistently lowest achieving schools and charter schools and in school districts and charter schools that are in improvement or corrective action status under the Elementary and Secondary Education Act.

 

Sec. 34.  ALTERNATIVE TEACHER PREPARATION REPORTS. 

 

The Board of Teaching must submit an interim report on the effectiveness of the alternative teacher preparation program under Minnesota Statutes, section 122A.245, to the house of representatives and senate committees having jurisdiction over kindergarten through grade 12 education by February 15, 2012, and a final report by February 15, 2014.

 

Sec. 35.  RULEMAKING AUTHORITY. 

 

The commissioner of education shall adopt rules consistent with chapter 14 which provide English language proficiency standards for instruction of students identified as limited English proficient under Minnesota Statutes, sections 124D.58 to 124D.64.  The English language proficiency standards must encompass the language domains of listening, speaking, reading, and writing.  The English language proficiency standards must reflect social and academic dimensions of acquiring a second language that are accepted of English language learners in


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12462


 

prekindergarten through grade 12.  The English language proficiency standards must address the specific contexts for language acquisition in the areas of social and instructional settings as well as academic language encountered in language arts, mathematics, science, and social studies.  The English language proficiency standards must express the progression of language development through language proficiency levels.  The English language proficiency standards must be implemented for all limited English proficient students beginning in the 2011-2012 school year and assessed beginning in the 2012-2013 school year.

 

Sec. 36.  REPEALER. 

 

Minnesota Statutes 2008, section 122A.24, is repealed."

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the second portion of the Garofalo amendment and the roll was called.  There were 41 yeas and 90 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Howes

Kelly

Kiffmeyer

Kohls

Lanning

Loon

Mack

Magnus

McFarlane

McNamara

Murdock

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Torkelson

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail and the second portion of the Garofalo amendment was not adopted.

 

 

      Garofalo withdrew the first portion of his amendment to H. F. No. 3833, as amended.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12463


 

Demmer moved to amend H. F. No. 3833, as amended, as follows:

 

Page 36, after line 16, insert:

 

"Sec. 19.  [122A.245] ALTERNATIVE TEACHER PREPARATION PROGRAM AND LIMITED-TERM TEACHER LICENSE. 

 

Subdivision 1.  Requirements.  (a) The Board of Teaching must approve qualified teacher preparation programs under this section that are a means to acquire a two-year limited-term license and to prepare for acquiring a standard entrance license.  School districts or charter schools may offer this program in partnership with:

 

(1) a college or university with a board-approved alternative teacher preparation program; or

 

(2) a nonprofit corporation formed for an education-related purpose and subject to chapter 317A and a college or university with a board-approved alternative teacher preparation program.

 

(b) An approved program provider may offer this program if:

 

(i) a need for teachers exists based on the determination by a participating school district or charter school that in the previous school year too few qualified candidates applied for its posted, available teaching positions;

 

(ii) the teaching staff does not reflect the racial and cultural diversity of the student population of the district or charter school; or

 

(iii) the school district or charter school identifies a need to reduce or eliminate a student achievement gap based on school performance report card data under section 120B.36.

 

(c) To participate in this program, a candidate must:

 

(1) have a bachelor's degree with a minimum 3.0 grade point average, or have a bachelor's degree and meet other board-adopted criteria;

 

(2) pass the reading, writing, and mathematics skills examination under section 122A.18; and

 

(3) pass the board-approved content area and pedagogy tests.

 

Subd. 2.  Characteristics.  An alternative teacher preparation program under this section must include:

 

(1) a minimum 200-hour instructional phase that provides intensive preparation before that person assumes classroom responsibilities;

 

(2) a research-based and results-oriented approach focused on best teaching practices to increase student proficiency and growth measured against state academic standards;

 

(3) strategies to combine pedagogy and best teaching practices to better inform teachers' classroom instruction;

 

(4) assessment, supervision, and evaluation of the program participant to determine the participant's specific needs throughout the program and to support the participant in successfully completing the program;

 

(5) formal instruction and intensive peer coaching throughout the school year that provide structured guidance and regular ongoing support;


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12464


 

(6) high quality, sustained, intensive, and classroom-embedded staff development opportunities conducted by a mentor or by a mentorship team that may include school administrators, teachers, and postsecondary faculty members and are directed at improving student learning and achievement; and

 

(7) a requirement that program participants demonstrate to the local site team under subdivision 5 that they are making satisfactory progress toward acquiring a standard entrance license from the Board of Teaching.

 

Subd. 3.  Program approval.  The Board of Teaching must approve alternative teacher preparation programs under this section based on board-adopted criteria that reflect best practices for alternative teacher preparation programs consistent with this section.  The board must permit licensure candidates to demonstrate licensure competencies in school-based settings and through other nontraditional means.

 

Subd. 4.  Employment conditions.  Where applicable, teachers with a limited-term license under this section are subject to the terms of the local collective bargaining agreement between the local representative of the teachers and the school board.

 

Subd. 5.  Approval for standard entrance license.  A local site team that may include teachers, school administrators, postsecondary faculty, and nonprofit staff must evaluate the performance of the teacher candidate using the Minnesota State Standards of Effective Practice for Teachers established in rule and submit to the board an evaluation report recommending whether or not to issue the teacher candidate a standard entrance license.

 

Subd. 6.  Standard entrance license.  The Board of Teaching must issue a standard entrance license to a teacher candidate under this section who successfully performs throughout the program and is recommended for licensure under subdivision 5.

 

Subd. 7.  Qualified teacher.  A person with a valid limited-term license under this section is the teacher of record and a qualified teacher within the meaning of section 122A.16.

 

Subd. 8.  Reports.  The Board of Teaching must submit an interim report on the efficacy of this program to the K-12 Education Policy and Finance committees of the legislature by February 15, 2012, and a final report by February 15, 2014.

 

EFFECTIVE DATE.  This section is effective for the 2010-2011 school year and later."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.

 

 

CALL OF THE HOUSE

 

      On the motion of Brod and on the demand of 10 members, a call of the House was ordered.  The following members answered to their names:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12465


 

Eastlund

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kath

Kelly

Kiffmeyer

Knuth

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

      Morrow moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees.  The motion prevailed and it was so ordered.

 

 

      The question recurred on the Demmer amendment and the roll was called.  There were 65 yeas and 68 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Beard

Benson

Brod

Brynaert

Buesgens

Bunn

Champion

Clark

Davnie

Dean

Demmer

Dettmer

Dittrich

Doepke

Downey

Drazkowski

Eastlund

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hayden

Holberg

Hoppe

Juhnke

Kelly

Kiffmeyer

Kohls

Lanning

Liebling

Loeffler

Loon

Mack

Magnus

Mariani

McFarlane

McNamara

Mullery

Murdock

Nornes

Norton

Otremba

Peppin

Sanders

Scalze

Scott

Seifert

Severson

Shimanski

Slocum

Smith

Swails

Thao

Torkelson

Wagenius

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anzelc

Atkins

Bigham

Bly

Brown

Carlson

Cornish

Davids

Dill

Doty

Eken

Falk

Faust

Fritz

Hausman

Haws

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Lieder

Lillie

Mahoney

Marquart

Masin

Morgan

Morrow

Murphy, E.

Murphy, M.

Nelson

Newton

Obermueller

Olin

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sertich

Simon

Slawik

Solberg

Sterner

Thissen

Tillberry

Urdahl

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail and the amendment was not adopted.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12466


 

CALL OF THE HOUSE LIFTED

 

      Morow moved that the call of the House be lifted.  The motion prevailed and it was so ordered.

 

 

Doepke moved to amend H. F. No. 3833, as amended, as follows:

 

Page 11, line 18, strike everything after the period

 

Page 11, strike lines 19 and 20

 

Page 11, line 21, strike the remaining existing language

 

Page 11, strike line 22

 

Page 11, line 23, delete the new language and strike the existing language

 

Page 11, delete lines 24 to 26

 

 

      The motion did not prevail and the amendment was not adopted.

 

 

Hamilton, Mariani, Magnus, Buesgens, Davnie, Gunther and Slocum moved to amend H. F. No. 3833, as amended, as follows:

 

Page 63, after line 24, insert:

 

"Sec. 42.  ANOTHER CHARTER SCHOOL AUTHORIZER. 

 

Notwithstanding section 124D.10, subdivision 23, a charter school identified as one of Minnesota's 34 persistently lowest achieving schools for purposes of the federal school improvement grant program under the American Recovery and Reinvestment Act that is being dissolved for failing to meet the pupil performance requirements in its charter school contract may seek another eligible authorizer until September 1, 2010.

 

If a charter school under this section acquires another eligible authorizer by September 1, 2010, it may continue to operate consistent with the requirements of section 124D.10.  If the school is unable to acquire a another eligible authorizer by September 1, 2010, it must be dissolved.

 

EFFECTIVE DATE.  This section is effective the day following final enactment."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.

 

 

      Pursuant to rule 1.50, Morrow moved that the House be allowed to continue in session after 12:00 midnight.  The motion prevailed.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12467


 

Demmer moved to amend H. F. No. 3833, as amended, as follows:

 

Page 24, after line 3, insert: 

 

"In addition to the other requirements under this paragraph and notwithstanding other law to the contrary, the commissioner must set a passing cut score for the high school algebra end-of-course assessment that indicates grade-level performance.  A student who does not receive a passing cut score on the assessment must receive remediation before again attempting the assessment.  A student, other than a student under clause (9), must meet or exceed the passing cut score to receive a high school diploma."

 

 

      The motion did not prevail and the amendment was not adopted.

 

 

Westrom moved to amend H. F. No. 3833, as amended, as follows:

 

Page 42, after line 31, insert:

 

"Sec. 23.  Minnesota Statutes 2008, section 123B.09, subdivision 10, is amended to read:

 

Subd. 10.  Publishing proceedings.  The board must cause publish and post its official proceedings to be published in a conspicuous place in the district's administrative office and also must publish its official proceedings once either in the official newspaper of the district or in a conspicuous place on the district's official Web site.  Such publication shall be made within 30 days of the meeting at which such proceedings occurred.  If the board determines that official newspaper publication of a summary of the proceedings would adequately inform the public of the substance of the proceedings, the board may direct that only a summary be published, conforming to the requirements of section 331A.01, subdivision 10."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the Westrom amendment and the roll was called.  There were 47 yeas and 86 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Benson

Brod

Buesgens

Cornish

Davnie

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Haws

Holberg

Hoppe

Kalin

Kath

Kelly

Kiffmeyer

Koenen

Kohls

Loeffler

Mack

Magnus

Murdock

Newton

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Sterner

Torkelson

Urdahl

Westrom

Zellers



Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12468


 

      Those who voted in the negative were:

 


Abeler

Anzelc

Atkins

Beard

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davids

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Knuth

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loon

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail and the amendment was not adopted.

 

 

Westrom moved to amend H. F. No. 3833, as amended, as follows:

 

Page 63, after line 24, insert:

 

"Sec. 42.  OPT-OUT OF UNFUNDED SCHOOL MANDATES. 

 

(a) Upon adoption of a written resolution approved by at least 60 percent of its members, a school board may opt-out of any unfunded mandate or unfunded increase to a prior mandate on a school district or charter school.

 

(b) For purposes of this section:

 

(1) "mandate" means a requirement imposed by the state of Minnesota through statute or rule, upon a school district or charter school that if not complied with results in civil liability, injunctive relief, a criminal penalty, or administrative sanction, including reduction or loss of funding; and

 

(2) "unfunded" means an expected additional cost to school districts and charter schools that exceeds the legislative increase to appropriations to school districts and charter schools to cover these costs.

 

(c) This authority does not apply to a new or increased mandate passed by law that is necessary to protect public health or is required to implement federal law."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12469


 

      The question was taken on the Westrom amendment and the roll was called.  There were 45 yeas and 88 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Cornish

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Howes

Kath

Kelly

Kiffmeyer

Kohls

Lanning

Loon

Mack

Magnus

McNamara

Murdock

Nornes

Norton

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Abeler

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davids

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McFarlane

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail and the amendment was not adopted.

 

 

      H. F. No. 3833, A bill for an act relating to education; providing for policy and funding for early childhood through grade 12 education including general education, education excellence, special programs, facilities and technology, accounting, state agencies, pupil transportation, education finance reform, and forecast adjustments; authorizing rulemaking; requiring reports; appropriating money; amending Minnesota Statutes 2008, sections 3.303, by adding a subdivision; 11A.16, subdivision 5; 16A.125, subdivision 5; 120A.41; 120B.021, subdivision 1; 120B.07; 120B.15; 122A.16; 122A.18, subdivisions 1, 2; 122A.23, subdivision 2; 123B.12; 123B.147, subdivision 3; 123B.53, subdivision 5; 123B.56; 123B.57, as amended; 123B.63, subdivision 3; 123B.88, subdivision 13; 123B.90, subdivision 3; 123B.92, subdivision 5; 124D.09, subdivision 20; 124D.4531, as amended; 124D.59, subdivision 2; 124D.65, subdivision 5; 125A.03; 125A.21, subdivisions 2, 3, 5, 7; 125A.515, by adding a subdivision; 125A.69, subdivision 1; 125A.76, subdivision 5; 125A.79, subdivisions 1, 7; 126C.01, by adding subdivisions; 126C.05, subdivisions 1, 3, 5, 6, 8, 16, 17; 126C.10, subdivisions 1, 2, 2a, 3, 4, 6, 13, 13a, 14, 18, by adding subdivisions; 126C.126; 126C.13, subdivisions 4, 5; 126C.17, subdivisions 1, 5, 6, by adding a subdivision; 126C.20; 126C.40, subdivision 1; 126C.54; 127A.30, subdivision 2; 127A.42, subdivision 2; 127A.43; 127A.45, subdivision 3, by adding subdivisions; 127A.51; 169.447, subdivision 2a; 169.4503, by adding a subdivision; 171.321, subdivision 2; Minnesota Statutes 2009 Supplement, sections 16A.152, subdivision 2, as amended; 120B.023, subdivision 2; 120B.30, subdivisions 1, 1a, 3, 4, by adding a subdivision; 120B.35, subdivision 3; 120B.36, subdivision 1; 122A.09, subdivision 4; 122A.40, subdivision 8; 122A.41, subdivision 5; 123B.143,


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12470


 

subdivision 1; 123B.54; 123B.92, subdivision 1; 124D.10, subdivisions 3, 4, 4a, 6a, 11, 23; 125A.02, subdivision 1; 125A.091, subdivision 7; 125A.63, subdivisions 2, 4, 5; 126C.41, subdivision 2; 126C.44; 171.02, subdivision 2b; 256B.0625, subdivision 26; Laws 2009, chapter 79, article 5, section 60; Laws 2009, chapter 96, article 2, sections 64; 67, subdivisions 14, 17; article 4, section 12, subdivision 3; article 5, section 13, subdivision 4; proposing coding for new law in Minnesota Statutes, chapters 120B; 121A; 122A; 123A; 123B; 124D; 125A; 126C; repealing Minnesota Statutes 2008, sections 122A.24; 123B.57, subdivisions 3, 4, 5; 123B.591; 125A.54; 125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10, subdivisions 2b, 13a, 13b, 25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 35, 36; 126C.12; 126C.126; 126C.17, subdivision 9a; 127A.46; 127A.50; Minnesota Statutes 2009 Supplement, sections 123B.54; 126C.10, subdivisions 24, 34.

 

 

      The bill was read for the third time, as amended, and placed upon its final passage.

 

      The question was taken on the passage of the bill and the roll was called.  There were 86 yeas and 47 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anzelc

Atkins

Benson

Bigham

Bly

Brynaert

Carlson

Champion

Clark

Cornish

Davnie

Dill

Dittrich

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Brown

Buesgens

Bunn

Davids

Dean

Demmer

Dettmer

Doepke

Doty

Downey

Drazkowski

Eastlund

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Jackson

Kelly

Kiffmeyer

Kohls

Lanning

Lenczewski

Loon

Mack

Magnus

McFarlane

McNamara

Murdock

Peppin

Reinert

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

      The bill was passed, as amended, and its title agreed to.

 

 

CALENDAR FOR THE DAY

 

 

      Hortman moved that the remaining bills on the Calendar for the Day be continued.  The motion prevailed.


Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12471


 

MOTIONS AND RESOLUTIONS

 

 

      Murphy, E., moved that the name of Simon be added as an author on H. F. No. 454.  The motion prevailed.

 

      Marquart moved that the name of Bly be added as an author on H. F. No. 2227.  The motion prevailed.

 

      Garofalo moved that his name be stricken as an author on H. F. No. 3829.  The motion prevailed.

 

      Drazkowski moved that the name of Murdock be added as an author on H. F. No. 3830.  The motion prevailed.

 

 

FISCAL CALENDAR ANNOUNCEMENT

 

      Pursuant to rule 1.22, Solberg announced his intention to place S. F. No. 2900; H. F. No. 3051; and S. F. No. 3361 on the Fiscal Calendar for Wednesday, May 12, 2010.

 

 

ADJOURNMENT

 

      Hortman moved that when the House adjourns today it adjourn until 11:00 a.m., Wednesday, May 12, 2010.  The motion prevailed.

 

      Hortman moved that the House adjourn.  The motion prevailed, and Speaker pro tempore Sertich declared the House stands adjourned until 11:00 a.m., Wednesday, May 12, 2010.

 

 

Albin A. Mathiowetz, Chief Clerk, House of Representatives



Journal of the House - 102nd Day - Tuesday, May 11, 2010 - Top of Page 12472